On 13 November, join CwX APAC 2025 for practical insights, bold conversations and must-see keynotes, livestreamed across APAC.

Why Register?

CwX APAC 2025 is designed to give you the ideas, skills and connections that matter most for the future of accounting and audit. By registering, you will:

• Stay ahead as standards, technology and AI reshape the profession
• Hear from leaders driving the future of audit, accounting and assurance
• Learn flexibly with live sessions in your time zone and on-demand access
• Join sharper conversations guided by Imogen Wilson (Accountants Daily)

Agenda Highlights

Here’s a look at what awaits you at CwX APAC 2025:

• Opening Keynote: Delivered by Danielle Supkis Cheek, SVP AI, Analytics and Assurance, Caseware, a recognised leader in accounting innovation and strategy, named one of Accounting Today’s Top 100 Most Influential People in Accounting.
• Fireside Chat: Featuring a senior leader from Caseware on the future of assurance
• Standards Update: Anne Waters, Deputy Technical Director, AUASB
• Industry Panel: The next chapter for accounting, audit and compliance in APAC
• The Great Caseware Pitch-Off: Innovation showcase, with the audience choosing the winner
• Customer Panel: Tech-enabled, people-led firms rewriting the audit playbook
• Closing Keynote: Christina Larkin, EY Oceania Assurance Digital Trust Leader — an expert in digital trust, Christina is responsible for utilising leading practice technology to provide Assurance services and help build trust in a digital world.

When to Join:
📅Thursday, 13 November 2025
🕙10:00 AM – 5:00 PM AEDT

Sydney/Melbourne: 10:00 AM – 5:00 PM AEDT
Auckland/Wellington: 12:00 PM – 7:00 PM NZT
Singapore: 7:00 AM – 2:00 PM SGT

Recordings are included with registration, allowing you to catch up on any sessions you may have missed.

CwX APAC 2025 is free to attend. Register now to join the live experience and unlock access to all recordings.

For firms across the Asia-Pacific region, the current moment feels familiar: stretched teams, long hours and a growing list of deadlines that do not leave much time to look up, let alone look ahead. 

But when the pace finally slows and the noise settles, the next question inevitably emerges: what comes next? 

CwX APAC 2025 arrives at exactly that moment. It is not just another event on the calendar. It is a forum for clarity, connection and action. This is your opportunity to take stock of progress, reset your strategy and learn from peers who are facing the same pressures and moving forward. 

This year’s event is entirely virtual and designed to work around your schedule. All sessions will be recorded and made available to registered attendees, so you can access key insights even if you are deep in delivery work. 

Register now to secure your place and unlock post-event access to all sessions. 

A Cloud conversation grounded in reality 

The shift to cloud technology is no longer aspirational. It is operational. For many firms, the decision to move to the cloud has already been made. Now the focus is on execution, making it efficient, secure and scalable. 

In the opening session, Future Ready Firms Embracing the Cloud, a Caseware leader will share real-world strategies firms are using to modernise workflows and meet evolving client expectations. This session is ideal for partners and practice leaders navigating digital change while maintaining delivery momentum. 

How tech is quietly solving audit’s most persistent pain points 

Transformation does not always need to be disruptive. Many of the most valuable improvements happen quietly within the audit file. 

In How Tech Is Quietly Solving Audit’s Most Persistent Pain Points, Danielle Supkis-Cheek, Caseware’s SVP AI, Analytics and Assurance,  explains how firms are solving longstanding inefficiencies using accessible technology. From data issues to bottlenecks in review and approval, this session focuses on practical solutions for firms that want to streamline without starting from scratch. 

If you are under pressure to improve without overhauling your entire process, this is a must-attend. 

Explore the full agenda to see how each session aligns with your current challenges. 

Strategy is no longer just about growth 

Clients now expect more than completion. They want insight, flexibility and partnership. 

Future Ready Firms Driving Smart Growth brings together industry leaders across APAC who are expanding their service models and evolving their workforce. For directors and senior managers, this session offers tested strategies for sustainable growth in a market shaped by regulation, AI and client demand. 

Choosing tools that actually deliver 

With so many digital tools available, it is easy to feel overwhelmed. The real question is which solutions genuinely improve performance without adding complexity. 

The Great Caseware Pitch-off features product specialists demonstrating practical, ready-to-use technology. From automated validation to financial reporting, attendees will vote on which solution delivers the most real-world impact. It is a rare opportunity to learn from side-by-side comparisons grounded in use cases instead of marketing slides. 

ESG expectations are rising 

Across APAC, regulators are raising the bar on ESG and sustainability disclosures. Clients are looking to their firms for direction and reporting complexity is growing. 

Caseware outlines how its solutions are evolving to meet these new requirements. Whether your firm is considering ESG advisory services or simply preparing to comply, this session gives you a valuable look at what is coming next. 

A people-led approach to technology 

Tools alone are not enough. People must drive and sustain the change. 

Tech-Enabled, People-Led: How Firms Are Rewriting the Audit Playbook highlights firms that are adapting their strategies to succeed in a digital-first audit environment. The discussion features experts with deep, practical experience including:  

• Kaisee Chwalko, Director at AQA Advisory, who advises audit and assurance teams across APAC on embedding technology into workflows while maintaining team engagement and client service standards. 

• Low Aik Liang, Founder and Partner at YouTrust Singapore, a boutique firm offering audit, tax and corporate services. With prior experience at EY and Crowe Singapore, Aik Liang brings both Big 4 and mid-tier perspectives on managing change across teams and industries. He is a Chartered Accountant of Singapore and a Certified Fraud Examiner. 

Christina Larkin: ‘Why the Future of Audit Needs a Human Core’ 

The final session at CwX APAC 2025 is delivered by Christina Larkin, EY Oceania’s Digital Assurance Leader and a respected voice on digital trust, responsible AI and the future of the profession. 

Christina will share how firms can harness innovation without losing their human foundation. She will offer a forward-looking message focused on integrity, adaptability and the role of purpose in leading transformation. 

With the theme “Elevate the Experience: Technology That Empowers People”, at its foundation, this keynote celebrates the progress firms have made and encourages attendees to return to their teams inspired to lead. 

A timely moment to reset 

CwX APAC is designed for professionals like you. You are busy, ambitious and deeply invested in delivering high-quality work while preparing for what is next. 

The event is free to attend, entirely virtual and all sessions will be available on demand to everyone who registers. You do not have to miss out because of scheduling conflicts or seasonal peaks. 

This year’s event will be hosted and moderated by Imogen Wilson, journalist at Accountants Daily, who brings an informed, curious and grounded perspective to every conversation. Her presence ensures that each session stays focused on what matters most to the people doing the work: clarity, value and action. 

Whether you are leading a firm, evolving your audit practice, exploring new tools or simply needing a moment of reflection, CwX APAC 2025 gives you access to the conversations shaping the future of audit in APAC. 

Register today to gain access and be part of a community redefining what it means to deliver value in 2026 and beyond. 

Why $50bn Red Pen? 

The phrase symbolises the widespread inefficiencies caused by excessive disclosures in financial reporting. While the number is illustrative, it reflects the potential billions lost across time, audit effort and decision-making delays when financial statements become cluttered with information that lacks relevance. 

Corporates may be meeting the disclosure checklist approach of the accounting standards requirements, but many are missing its spirit. Speaking at Caseware’s latest Speaker Series, Carmen Ridley, a leading expert in Australian Accounting Standards, challenged finance professionals to critically assess the content of their IFRS / AASB financial statements. Her central concern was that excessive disclosures are undermining the usefulness and readability of financial statements and obscuring the information that users actually need. 

The issue is not one of non-compliance. Rather, it stems from inertia. Companies continue to roll over templates from prior years, including accounting policies and disclosures that may no longer apply. “You see entities disclosing policies on goodwill that hasn’t been on the books for five years or describing revenue recognition in ways that do not reflect their actual business operations,” Ridley said. 

The financial cost of this inefficiency is difficult to measure precisely, but the burden is real. Across thousands of businesses, the time spent preparing, reviewing, auditing, and restating unnecessary content in financial reports could represent a cumulative cost well into the billions. As pressure grows on compliance budgets and assurance fees, the case for streamlining is not just academic. It is economic. 

Problems with the status quo 

The drive to comply has often been mistaken for more information is better when in reality less useful, tailored information is generally much more beneficial.. We currently see a  proliferation of boilerplate text and standardised disclosures that meet formal requirements but fail to inform without hunting through lots of words and pages of clutter. 

Key issues identified include: 

Materiality misunderstood 

 Information is often included simply because it appeared last year, rather than because it is relevant to this year’s transactions or conditions. 

Excessive reliance on templates 

 Many accounting policies are repeated directly from standards without tailoring to the specific operations or judgments of the entity and the changes from significant accounting policies to material accounting policy information in IAS 1 / AASB 101 Presentation of Financial Statements have been ignored or applied through a change in name only. 

Obscured insights 

 Important information can be buried under layers of immaterial / unnecessary text, making it difficult for users to interpret key financial positions and results. 

Limited user engagement 

 Lengthy reports discourage users from reading or understanding them, particularly in sectors such as not-for-profit or small to medium private entities, where stakeholders are often not accounting experts. 

Ridley highlighted that effective financial reporting is not just about inclusion. It is also about exclusion. The core question that should guide preparers is whether each disclosure aids a user’s understanding of the entity’s financial performance and position. 

Regulator and standards body support 

Ridley’s argument aligns with recent commentary from both ASIC and the International Accounting Standards Board (IASB). ASIC has explicitly advised against including immaterial information that may add clutter. The IASB has revised the definition of materiality to address the problem of obscured information, incorporating the idea that even truthful disclosures can be unhelpful if they hinder the visibility of what matters most. 

The move from “significant accounting policies” to “material accounting policy information” under revised AASB 101 is a case in point. Entities must now assess not only whether a transaction is material, but also whether the associated accounting policy adds any interpretive value which is specific to the entity rather than a regurgitation of the accounting standard requirements. 

Practical approaches 

Ridley encouraged preparers to read their own existing financial statements with fresh eyes before they prepare the next set. Starting from page one, practitioners should identify text that fails to add insight, repeats what is stated in the accounting standards, or simply restates what is visible on the face of the statements. 

This is not a call for a wholesale rewrite every year. Instead, it is about investing time once to create a leaner, more effective reporting base that can be updated rather than perpetually replicated. 

Tools that support better reporting 

For organisations looking to take practical steps toward cleaner financial statements, technology can assist. Caseware Financials, part of the broader Caseware suite, includes structured templates and configurable notes designed to support the application of materiality and entity-specific relevance in disclosures. 

The tool provides a framework that allows users to tailor reports according to the nature and complexity of their operations. While it does not replace the professional judgment required for IFRS reporting, Caseware Financials is built to encourage a more disciplined, consistent and streamlined approach to financial statement preparation. 

By helping preparers focus on disclosures that truly matter, the software aligns with the broader objective articulated during the webinar. Financial reports should not just be compliant. They should be readable and useful. 

A shift worth making 

Financial statements are not an end in themselves. They are meant to support decision-making, reflect accountability and convey financial results. When disclosures fail to meet these objectives, the value of the report is diminished. 

Ridley’s final message was pragmatic. “You do not need to overhaul everything in one go. But if you can remove even a few pages of unnecessary disclosure, you are already improving the clarity and usefulness of your financial statements.” 

This is not a matter of aesthetics. For companies, investors, regulators and auditors alike, clarity in reporting translates to efficiency, transparency and trust. 

Organisations seeking to streamline their financial reporting practices can explore how Caseware Financials supports a more material, relevant, and efficient approach. For further information or to request access, visit our website or contact the Caseware team to discuss how the platform aligns with your reporting needs. 

Understanding financial statements: SPFS vs GPFS 

When we hear the term “financial statements,” it can mean many different things – Special Purpose, General Purpose, Tier 1, Tier 2 and at some point in the future, maybe Tier 3. This article explores these classifications and how preparers and auditors can ensure their financial statements comply with legislation, Australian accounting standards, and regulatory requirements. 

A brief history of the reporting entity concept in Australia 

For many years, Australia relied on the reporting entity concept to determine the type of financial statements entities should prepare. However, this judgement-based approach led to inconsistencies, as similar entities could prepare financial statements under different frameworks, reducing comparability. 

AASB 2020-2: Ending SPFS for For-Profit Entities 

To address these issues, the Australian Accounting Standards Board (AASB) initiated a project in 2018 to eliminate the reporting entity concept. AASB 2020-2 formally removed the ability of many for-profit entities to prepare SPFS. This amendment applies to annual reporting periods beginning on or after 1 July 2021. 

The diagram below illustrates the methodology in place for for-profit entities for annual reporting periods commencing on or after 1 July 2021: 

When are Australian entities required to prepare GPFS? 

Under the new methodology, all for-profit entities lodging financial reports with the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001 must now prepare GPFS. Entities should also review their constitutions, trust deeds, sale/purchase agreements and bank agreements to determine reporting obligations. 

How the grandfathering clause affects financial reporting 

Entities are not required to revise existing documents that pre-date the accounting standard. However, if these documents are amended after 1 July 2021 and if they still require compliance with Australian Accounting Standards, the exemption is lost and the entity must prepare GPFS. 

Reviewing legal documents that trigger GPFS obligations 

Documents such as constitutions, trust deeds, sale and purchase agreements, and financing agreements should be closely reviewed. Any reference to Australian Accounting Standards in an amended document can activate the requirement for GPFS preparation. 

What tier of GPFS should you prepare? Tier 1 vs Tier 2 explained 

Once the need to prepare GPFS is established, the next step is identifying the appropriate tier: 

• Tier 1 GPFS: Complies with all recognition, measurement, presentation and disclosure requirements of Australian Accounting Standards and aligns with IFRS. This is required for publicly accountable entities. 

• Tier 2 GPFS (Simplified Disclosures): Suitable for entities that are not publicly accountable. These statements present the same financial position as Tier 1 but with reduced disclosures, making them more cost-effective to prepare and audit. 

What to expect from Tier 3 GPFS for Not-for-Profit Entities 

At present, not-for-profit (NFP) private-sector entities still use the reporting entity concept. However, this is expected to change. The AASB has released two exposure drafts (ED 334 and ED 335) that propose: 

• Restricting SPFS for NFPs 

• Introducing Tier 3 GPFS with simplified recognition and measurement rules 

These drafts closed for comment on 28 February 2025, with final standards expected in the first half of 2026. Tier 3 will be a standalone standard with less alignment to Tier 1 and Tier 2, and entities will report different figures depending on their selected accounting policies. 

Next steps: How auditors and preparers should respond 

To stay compliant, entities and their advisors should: 

• Reassess whether GPFS are required under current documents 

• Determine the appropriate GPFS tier 

• Monitor the AASB’s Tier 3 rollout for NFPs 

• Avoid amending legacy documents unless necessary 

Tools and templates for Tier 1 and Tier 2 GPFS 

Caseware’s financial reporting solution offer templates designed to support Tier 1 and Tier 2 GPFS reporting. These tools help ensure accurate, consistent and compliant financial statements across both the for-profit and not-for-profit sectors. 

Take action now to stay ahead of financial reporting reforms 

The shift to a structured financial reporting regime is already well underway. Now is the time for entities to take stock of their obligations, revisit existing documentation and plan their transition to the appropriate GPFS tier. With Tier 3 on the horizon for NFPs and increasing scrutiny on disclosure quality, early preparation is critical. Equip your teams, review your frameworks and stay ahead of compliance—before it becomes urgent. 

Equip yourself for compliance and confidence 

Navigating financial reporting reforms doesn’t have to be a burden. By investing in fit-for-purpose tools and resources that streamline compliance, entities can focus on strategic decision-making with confidence in their reporting. Whether you’re a not-for-profit preparing for Tier 3 or a for-profit moving from SPFS to GPFS, adopting smart technology solutions will help you ensure accuracy, transparency and peace of mind in your financial reporting processes. Solutions like Caseware can help finance teams build more efficient workflows, reduce reporting errors and adapt confidently to evolving standards—supporting better outcomes across the financial reporting lifecycle. 

FAQs 

Do I need to move from SPFS to GPFS? 

If your entity lodges reports with ASIC or is governed by documents referencing Australian Accounting Standards and those documents have been amended after 1 July 2021, you are likely required to prepare GPFS. 

What is the difference between Tier 1 and Tier 2 GPFS? 

Tier 1 requires full disclosures under IFRS, typically for publicly accountable entities. Tier 2 uses the same measurement principles but offers reduced disclosures, making it more cost-effective for smaller or private entities. 

Who will qualify for Tier 3 GPFS? 

Tier 3 is intended for certain not-for-profit entities. Eligibility will be determined by the regulator (e.g. ACNC) once the AASB finalises the standard in 2026. 

Accountants and auditors in practice play a central role in helping clients meet their financial reporting obligations under International Financial Reporting Standards (IFRS). But as reporting expectations evolve, there’s growing attention on whether financial statements are not only compliant, but also clear, relevant, and useful to stakeholders. 

A 2023 CPA Australia survey found that 60% of CFOs identified reporting complexity as a key concern. Globally, EY’s Board Risk Survey showed that over half of directors struggle to use financial statements to inform strategic risk discussions. For those preparing or reviewing reports across multiple entities, these concerns highlight the need for financial statements to communicate effectively—not just comply. 

The evolving role of the practitioner 

Public practice professionals are well placed to support clients in producing financial reports that meet both regulatory and stakeholder expectations. Beyond preparing or auditing financial statements, practitioners often guide clients on how to interpret standards, apply judgement, and present information in a way that reflects both financial performance and operational context. 

This role is increasingly important in today’s environment, where boards, investors, regulators, and even internal management are demanding more accessible and decision-useful information. 

Materiality and relevance 

Applying materiality effectively is fundamental to delivering focused, useful financial reports. However, in practice, materiality can be inconsistently applied—sometimes resulting in disclosures that satisfy compliance needs but add limited value for readers. 

Helping clients assess whether their disclosures align with the needs of financial statement users is a key opportunity for practitioners to add value. This includes encouraging more thoughtful discussions about what is relevant and supporting decisions that reflect both the spirit and the technical requirements of the standards. 

Professional judgement in practice 

Professional judgement is essential in any IFRS engagement. For accountants and auditors, this involves helping clients interpret standards in context—especially where there’s uncertainty around disclosures, estimates, or explanatory notes. 

Experience across a client base gives practitioners a broader perspective. By drawing on what works across similar reporting scenarios, professionals can support clients in producing clearer, more consistent, and more relevant financial statements. 

A timely opportunity to reflect 

To support this conversation, Caseware Australia is hosting a webinar titled “Rethinking IFRS Reporting for Better Business Insights,” featuring Carmen Ridley, financial reporting consultant and former member of the Australian Accounting Standards Board (AASB) on 26 June at 12:30 PM AEST. The session will examine current challenges in financial reporting and offer perspectives on how preparers and reviewers can respond thoughtfully and confidently. 

The session is relevant to practice firm accountants, audit partners, financial reporting advisors, and professionals involved in preparing or reviewing IFRS-compliant financial statements. 

Why it matters for practice 

Clients rely on trusted advisers to help them make informed reporting decisions. Whether you are finalising year-end accounts, supporting disclosure reviews, or preparing for audit discussions, having a clear view of evolving expectations around IFRS can help you guide your clients more effectively. 

Good financial reporting is about more than ticking the compliance box. For practitioners, it’s an opportunity to support clarity, build confidence, and enhance the quality of financial information provided to stakeholders. 

 Is your IFRS reporting shaping strategic understanding or just satisfying compliance? 

Join financial reporting specialist and former AASB Board Member, Carmen Ridley, for a high-impact session focused on elevating your IFRS disclosures. As APAC’s dynamic financial markets experience rising regulatory expectations and sharper stakeholder scrutiny, business leaders must go beyond ticking the box. Financial reports are no longer just compliance tools – they are platforms to deliver clear, strategic insight that drives confident decision-making. 

• • Focus on disclosures that actually matter 

• • Recognise what experienced reviewers quietly remove 

• • Apply evolving guidance on materiality 

• • Avoid common reporting missteps hiding in plain sight 

Whether you’re shaping reports internally or reviewing them at a senior level, this session will help you rethink how financial disclosures can drive business clarity and stakeholder trust. 

As the 2025 audit cycle gains momentum, audit firms across the Asia-Pacific region—including Australia—are re-evaluating their operational models in response to mounting regulatory scrutiny, workforce shortages, and rising stakeholder expectations. In Australia, audit quality remains a key focus for regulators such as the Australian Securities and Investments Commission (ASIC), driving firms to prioritise efficiency and accuracy in their engagements. Similar developments are taking place across Singapore, Hong Kong, and New Zealand, where regulatory bodies and professional associations are encouraging greater integration of technology to future-proof the profession. 

ASIC’s inspection report highlighted deficiencies in 24% of key audit areas reviewed across major firms, with notable concerns around auditor independence. These findings reflect the increased scrutiny facing auditors and underscore the need for rigorous documentation and defensible professional judgements. The International Federation of Accountants’ 2024 global snapshot similarly emphasises the critical role digital adoption plays in strengthening audit resilience worldwide. 

Alongside regulatory challenges, audit firms continue to struggle with talent retention. According to Chartered Accountants ANZ, the professional services sector is facing ongoing difficulties attracting and retaining qualified auditors, particularly at junior levels. This shortage places added pressure on existing staff during peak periods and has prompted many firms to streamline processes and upskill their workforce. 

This workforce shift is not unique to Australia. In Asia, countries like Singapore and Indonesia are experiencing a drop in accounting graduates, while New Zealand is grappling with an ongoing shortage of experienced auditors. According to the IMA Global Talent Retention Report, Indonesia faces a shortfall of nearly 180,000 accountants. In New Zealand, firms are finding it difficult to complete audits on time due to understaffing, as reported by Acuity Magazine. These trends point to a regional need for scalable and sustainable solutions. 

Digital transformation has emerged as a key strategy in addressing these challenges. Audit firms are increasingly turning to tools that reduce manual workloads and enhance collaboration, allowing auditors to focus more on risk areas and value-added insights. This includes the adoption of automated data checks, PDF parsing tools, and real-time reporting platforms. 

One such tool, Caseware Validate, is being adopted across firms for its ability to conduct thousands of checks on financial statements within seconds. This automation allows audit teams to quickly identify inconsistencies or anomalies and make decisions faster. By cutting down manual review time, Validate improves both the speed and reliability of the audit process, especially during busy season workloads. 

Additional features such as casting verification and prior period mismatch detection help ensure accuracy, while its cloud-based infrastructure supports real-time team collaboration, version control, and secure data handling. These efficiencies are particularly valuable for mid-sized firms managing multiple clients with limited staffing. 

The push for digitisation is also supported at the regulatory level across the Asia-Pacific. In Australia, ASIC and the Financial Reporting Council have highlighted the importance of digital tools in lifting audit quality and resilience. In Asia, the Institute of Singapore Chartered Accountants (ISCA) has introduced programs promoting digital literacy and technology adoption. Similarly, the Hong Kong Institute of Certified Public Accountants (HKICPA) continues to encourage the use of data analytics and emerging technologies to modernise audit practices. 

The future of auditing in the Asia-Pacific, including Australia, is undoubtedly digital. As compliance obligations become more demanding and stakeholder expectations rise, audit professionals will increasingly depend on agile, tech-enabled systems to meet these demands. Tools like Validate can play a pivotal role in enabling faster decision-making and improving audit consistency—particularly when integrated with well-structured professional frameworks and ongoing digital upskilling. 

For firms reviewing their audit readiness this season, now is a good time to assess how effectively current systems support quality, scalability, and resilience. 

For further information on how automation tools are influencing audit quality practices, explore Caseware Validate.

Join Andreas Ong and Denise Michel as they explore how Cloud Financials can help you in the preparation of your financial statements.

Join Carmen Ridley and Sarah Butler for an engaging live Financial Reporting Q&A session. To maximize the value of the event, we encourage you to send your questions to Carmen in advance to sales.au@caseware.com.

Don’t miss this chance to enhance your understanding and refine your financial reporting skills.

The Australian Accounting Standards Board (AASB) has released two exposure drafts providing their proposals for reshaping financial reporting for not-for-profit (NFP) private sector entities in Australia.  

These documents could redefine financial reporting for thousands of organisations, making this consultation period a critical moment for stakeholders to engage. 

In this blog, we’ll explore the key aspects of these EDs and why your voice matters in shaping this framework. The clock is ticking—the comment period closes soon (February 2025 isn’t that far away), and the chance to influence these important changes will pass. 

What are the Exposure Drafts about? 

The Exposure Drafts propose two things: 

1. Remove the ability of certain NFP private sector entities to prepare special purpose financial statements (SPFS) and 

2. Introduce a third tier of accounting standards in a stand-alone standard which will be available for certain NFP entities to adopt as a general purpose framework. 

Smaller NFPs, often operating with limited resources, have long grappled with complex financial reporting requirements. While larger NFPs and entities with public accountability will continue to adhere to Tier 1 or Tier 2 frameworks, Tier 3 is designed to simplify financial reporting while maintaining core principles of good governance and stakeholder trust.  

Who does Tier 3 apply to? 

Tier 3 reporting will apply to smaller NFP entities, which are typically defined by thresholds based on revenue or other key financial metrics.  

It is important to note that the AASB is not responsible for determining who is able to use the Tier 3 standard, rather this is the remit of the regulators such as ACNC or state regulators of Incorporated Associations. 

What are the key documents? 

The consultation package includes: 

1. ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special Purpose Financial Statements – this document proposes amendments to various Australian Accounting Standards to require general purpose financial statements for NFP entities who meet EITHER of the following criteria: 

1. Required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards OR 

2. Required by their constituting or other document to prepare financial statements in accordance with Australian Accounting Standards.  We anticipate that existing documents will be grandfathered and this will cover only new or amended agreements after a specified date (yet to be determined). 

ED 334 also makes amendments to the Conceptual Framework for Financial Reporting to allow this to be applicable to NFP entities and would remove the Framework for the Presentation and Preparation of Financial Statements. 

2. ED 335 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities – this document outlines the proposed recognition, measurement, presentation and disclosure requirements for Tier 3 reporting. It is intended to be a stand-alone standards covering common transactions of smaller NFP private sector entities and offering simpler alternatives to existing Tier 1 and Tier 2 requirements. 

In addition, the AASB have provided a summary of the Tier 3 ED proposals with a comparison to Tier 2 and a key facts document.  The AASB have also indicated that they are in the process of developing a webcast. 

Why does this matter? 

Financial reporting is about more than compliance; it underpins the trust and accountability essential to the NFP sector’s mission. The proposed Tier 3 framework could make reporting less burdensome for smaller entities, freeing up resources to focus on what matters most: delivering impact to the communities they serve. 

Stakeholders need to consider: 

• Whether the proposed framework strike the right balance between simplicity / reliability / consistency / usefulness? 

• Will these changes improve the accessibility of financial statements for stakeholders? 

• The challenges and opportunities in your current reporting practices. Do these proposals make reporting easier or more meaningful? 

If the final standards don’t reflect the sector’s needs, the opportunity to adjust them will have passed. That’s why your voice is critical during this consultation period. 

A call to action 

The AASB’s proposals mark a pivotal moment for financial reporting in the NFP sector. The introduction of a simpler, Tier 3 framework could ease reporting for smaller organisations while maintaining the integrity and transparency that stakeholders rely on. However, the success of these changes depends on input from the people and organisations they aim to serve. 

Once the comment period closes, the opportunity to shape these standards will be gone. If you care about the future of financial reporting for NFP entities, now is the time to act. Review the Exposure Drafts, reflect on the proposals, and share your thoughts with the AASB. 

Share the consultation details with your networks to ensure a broad range of voices is heard. 

How can you provide your input? 

Whether you’re a finance professional, board member, auditor, or community stakeholder, your insights can shape the future of NFP reporting. Some options for engaging are provided below: 

1. Read the documents: Take the time to review the relevant documents. If they seem overwhelming, focus on the areas most relevant to your role or organisation. 

2. Complete the online survey(s): 

• ED 334, click here to access 

• ED 335, click here to access. 

3. Attend an outreach event: details to be made available on the AASB website. 

4. Reach out to the AASB directly: staff are available for meetings / emails. 

5. Submit a comment letter: details on the AASB website. 

Responses don’t need to be long or technical. The AASB values all perspectives, whether they are from experienced accountants or grassroots community organisations. 

For more insights on the latest financial reporting standards updates and best practices, watch Carmen Ridley’s session at the CwX APAC 2024 Conference here.