5th June 2026
The Financial Reporting Council (FRC) met on 5 June 2026. The key matters considered and decided are outlined below:
Nominations Committee update
- The FRC is supporting continuity on the AASB and AUASB. The FRC approved amendments to the Nominations Committee Charter, allowing short‑term extensions for AASB and AUASB members, while legislation to establish External Reporting Australia is before the Parliament.
- The FRC subsequently approved extensions for 12 AASB and 9 AUASB members. The Chair signed appointment instruments on 29 May 2026.
Environmental Scan
- Members noted Parliamentary scrutiny of alleged breaches of confidentiality and the handling of a whistleblower complaint by a large Australian multidisciplinary firm.
- 2026–27 Budget measures included increased thresholds for large proprietary companies, consultation on climate disclosure efficiency, and simplification of reporting relief for group entities.
Due process
- The AASB and AUASB Chairs provided an overview of their boards’ due process frameworks.
- Members discussed that due process begins with early international engagement, requires transparency and timely disclosure of decision-making materials, and that appropriate consultation enhances standard quality.
AASB
Accounting
- The AASB issued two new accounting standards, concluding work on the Tier 3 Not-for-Profit Private Sector Financial Reporting Framework.
Sustainability
- The AASB continues to support S2 implementation through guidance and partnerships with ASIC and CSIRO.
Consultation
- The AASB agenda consultation has provided valuable insights on the sector’s priorities in a resource‑constrained environment – notwithstanding potential reforms to the board.
International engagement
- The AASB hosted the International Forum of Standard Setters, noting participation from several Pacific nations.
AUASB
- The AUASB continues to focus on sustainability assurance guidance. The AUASB reviewed December 2025 reports of listed entities to identify areas requiring guidance.
- The AUASB continues work to support practitioners in implementing ASSA 5000 under the local climate reporting regime.
XRB
- Economic pressures in New Zealand continue to drive red tape reduction and streamlined public spending.
- The XRB will consult on a climate reporting roadmap following earlier consultation on international alignment.
- The XRB is reviewing its accounting standards framework, assessing whether its tiered, sector-based model remains fit for purpose.
Next meeting
The next FRC meeting is to be advised.