ASIC proposes remake of financial reporting relief instruments

The Australian Securities and Investments Commission (ASIC) is seeking industry feedback on its proposal to remake five legislative instruments that provide financial reporting relief. 

These instruments are due to automatically expire, or “sunset”, on Oct. 1 under the Legislation Act 2003.

The affected instruments include:

• ASIC Corporations (Non-Reporting Entities) Instrument 2015/841
• ASIC Corporations (Post Balance Date Reporting) Instrument 2015/842
• ASIC Corporations (Related Scheme Reports) Instrument 2015/839
•  ASIC Corporations (Stapled Group Reports) Instrument 2015/838
• ASIC Corporations (Externally-Administered Bodies) Instrument 2015/251

ASIC proposes no change to the core effect

In a media announcement, ASIC confirmed that following a review, the five instruments were found to be “operating effectively and efficiently” and remain a necessary and useful part of the financial regulatory framework.”

While the core relief provided by each instrument will remain unchanged, ASIC is proposing minor amendments to ensure consistency with its current drafting style. Notably, it also proposes a clarification to Instrument 2015/251.

“We also propose to clarify that the relief in ASIC Instrument 2015/251 is not intended to apply to registrable superannuation entities,” ASIC said.

The proposal comes amid a broader push by ASIC to enhance financial transparency and compliance. In addition to its 2025–26 financial reporting and audit focus areas – 2025–26 financial reporting and audit priorities – which include revenue recognition, asset values, climate disclosures, and auditor independence. ASIC is also preparing to launch two new dashboards in late 2025.

Financial reporting relief at a glance

Each of the five instruments plays a specific role in easing compliance and financial reporting obligations:

• Instrument 2015/841 allows non-reporting entities to prepare financial statements using recognition and measurement concessions available to reporting entities.
• Instrument 2015/842 permits entities to disclose the financial effect of significant acquisitions or disposals post-balance date in their financial statement notes.
• Instrument 2015/839 enables related registered schemes to present their financial statements in a single report.
• Instrument 2015/838 allows stapled groups to do the same.
• Instrument 2015/251 provides externally administered bodies relief from standard financial reporting and AGM requirements, and applies during wind-up scenarios for companies, registered schemes, foreign funds, or CCIV sub-funds.

Stakeholder feedback invited until Aug. 1

ASIC is calling for input from industry stakeholders and the public, with submissions due by 5pm AEST on Aug. 1. Comments should be submitted to [email protected].

Refer to "CS 24 Proposed remake of financial reporting-related legislative instruments" for full details.