FRC Minutes – 5 June 2026

Attendees and apologies

Participants – Financial Reporting Council members

• Andrew Mills (Chair)
• Keith Kendall (virtual) (AASB Chair)
• Doug Niven (AUASB Chair)
• Rachel Grimes
• Pru Bennett
• Alison White
• Emma Herd (virtual, from 12:10 pm)
• Amy Fox

Guests

• John Kensington (virtual) (XRB)
• Jacqueline Cheyne (virtual) (XRB)
• Charis Halliday (virtual) (AASB)
• Nick Dent (virtual) (Department of Finance)

Observers

• Michael Latchford (FRC Secretariat)
• Zahia Aicken (virtual) (FRC Secretariat)
• Kim Demarte (Treasury)

Apologies

• Justin Williams (AASB/AUASB)

Public Session

1. Introduction

The Chair opened the meeting at 09:45, acknowledged Country and welcomed attendees.

Declarations of interest are current as of 25 May 2026. Pru Bennett will make minor amendments via the Secretariat.

2. Nominations Committee update

Rachel Grimes AM, FRC Nominations Committee (NC) Chair, tabled the following:

• On 22 April 2026, the FRC approved amendments to the NC Charter by out‑of‑session resolution, allowing short‑term extensions for AASB and AUASB members pending legislative reforms.
• On 25 May 2026, the FRC approved extensions for 12 AASB and 9 AUASB members by out‑of‑session resolution. The Chair signed appointment instruments on 29 May 2026.¹

3. Environmental scan

3A. Member reflections

Recent reporting

• Members noted alleged breaches of confidentiality and the handling of a whistleblower complaint by a large Australian multidisciplinary firm, KPMG.
• Governance arrangements of large multidisciplinary firms, including independent directors and global leadership engagement, were discussed.
• The Parliamentary Joint Committee on Corporations and Financial Services will hold hearings on 19 June 2026.

Budget announcements

• 2026–27 Budget measures included increased thresholds for large proprietary companies, consultation on climate disclosure efficiency, and simplification of reporting relief for group entities.
• In relation to the consultation on climate-related reporting efficiency, it was suggested reforms should focus on decision‑useful disclosures for investors, alongside reducing compliance costs.
  • Potential changes include proportionality, assurance, supplier information requests (particularly for small businesses), and clarification of ‘undue cost or effort’.

3B. XRB update

• Economic pressures in New Zealand continue to drive red tape reduction and streamlined public spending.
• The XRB is eager to engage with the new Minister of Commerce and Consumer Affairs, Cameron Brewer.
• The XRB will consult on a climate reporting roadmap following earlier consultation on international alignment. It recently adopted international sustainability assurance (ISSA 500) and sustainability ethical standards (IESSA), reflecting stakeholder feedback.
• The XRB is reviewing its accounting standards framework, assessing whether its tiered, sector-based model remains fit for purpose.

4. Overview of AASB and AUASB consultative processes

The AASB and AUASB Chairs outlined due process frameworks and addressed questions. Key points included:

• Due process is a priority and begins with early engagement with international standard setters.
• The AASB and AUASB’s due process frameworks promote transparency through timely publication of decision-making information.
• Both the AASB and AUASB require appropriate consultation and timely engagement with stakeholders to enhance standard quality. The AASB uses different modes of consultation including through surveys to reach stakeholders.
• International frameworks include formal oversight structures. Under current arrangements, FRC oversight remains high-level rather than at the individual standard level.

5. Monitoring and influencing international developments

• The International Sustainability Standards Board (ISSB) will propose nature-related disclosure requirements in an IFRS Practice Statement, with an exposure draft planned for October 2026.
  • Sequencing concerns were raised, given ongoing implementation of S1 and S2.
  • Members noted a well-developed domestic legislative framework on environmental and nature-related disclosures.
  • Members suggested that the ISSB could alternatively proceed to a discussion paper to develop its evidence base.

6. Oversight of Australian standards

6A. AASB

• On international engagement, the AASB hosted the International Forum of Standard Setters, noting participation from several Pacific nations (including first-time attendees).
• The AASB agenda consultation has provided valuable insights on the sector’s priorities in a resource‑constrained environment – notwithstanding potential reforms to the board.
• The AASB issued two new accounting standards, concluding work on the Tier 3 Not-for-Profit Private Sector Financial Reporting Framework.
• On sustainability reporting, the AASB continues to support S2 implementation through guidance and partnerships with ASIC and CSIRO.

6B. AUASB

• Continued 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.
• The AUASB hosted a virtual roundtable jointly with the APESB on the IAASB and IESBA Strategy and Work Plan 2028-31 Stakeholder Survey (which will inform the IAASB and IESBA work plans).
• The AUASB revised GS 002 and continues revising GS 007 with the NZAuASB.

7. Public Sector Advisory Group update

• The Public Sector Advisory Group (PSAG) Chair, Amy Fox, provided a verbal update to the FRC, following the last PSAG meeting of 18 May 2026.
  • Budget savings measures were noted.
  • Australasian Council of Auditors-General (ACAG) reported on audit quality in the public sector and noted staffing constraints have eased post‑COVID, except at junior levels.
  • "Scope creep" in disclosures and interest in improving efficiency were noted.
  • Interest in AASB 18 and the AASB 16 post-implementation review.

8. Other business

The Hon Dr Daniel Mulino, Assistant Treasurer and Minister for Financial Services made the following appointments:

• Andrew Mills as Chair of the FRC from 1 July 2026 until 30 September 2026
• Prudence Bennett as member of the FRC from 9 June 2026 until 8 September 2026
• Rachel Grimes as member of the FRC from 9 June 2026 until 8 September 2026
• Keith Kendall as Chair of the AASB from 1 July 2026 until 30 September 2026.

8A. Correspondence received and sent

• On 24 April 2026, the Chair and the FRC Nominations Committee Chair wrote to current AASB and AUASB members concerning extensions to their appointments.
• On 4 June 2026, the FRC Chair wrote to congratulate AASB and AUASB members extended by the FRC.

8B. Action items

• No items recorded for this meeting. Consistent with the FRC’s regular stakeholder engagement, members met with Mark Babington of the UK FRC in April 2026.

8C. Next meeting

To be announced.

Public session ended at 12.48.

¹ Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Members) Appointment (No. 1) 2026 and Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Members) Appointment (No. 1) 2026