The integrated program covers both financial reporting and audit quality and for the first time ASIC provided some early signalling in respect of sustainability.
ASIC continues to split the areas of focus into two separate components:
- Enduring focus areas: apply to all reporting periods; and
- Particular focus areas: relevant for the reporting period and supplement the enduring focus areas.
Focus areas are consistent with those from prior periods. There are no new enduring or particular focus areas for 30 June 2025.
As expected the enduring focus areas continue be focused on areas of significant judgement. ASIC highlighted that extra care should be taken when making judgments considering recent capital market volatility.
Focus areas for 30 June 2025 financial reports
The enduring focus areas include:
- Asset values
- Provisions
- Subsequent events
- Disclosures in the financial report and OFR
ASIC also highlights areas where there have been previous recurring findings, for example revenue recognition. Revenue recognition is typically an area where significant judgement is required especially where complex contractual arrangements exist. Disclosure of those judgements, accounting policies and appropriateness of those policies is an ongoing focus for ASIC. Entities should ensure revenue recognition accounting policies and significant judgements relating to those accounting policies are clearly disclosed, for example whether an entity is an agent or principal.
Focus areas are identified from the results of ASIC’s integrated financial reporting and audit surveillance program. The program focusses on financial reports of listed entities and other economically significant public interest entities such as large proprietary companies, grandfathered entities and registered superannuation funds.
Read further discussion on each of these areas, including guidance for preparers to consider in addressing the focus areas, in our Reporting Update.
Other topical reminders
There is an ongoing focus on large proprietary companies that prior to 2022 were exempt from lodging audited financial reports. ASIC highlighted that there are still a number of companies not complying with their broader financial reporting obligations. ASIC continues to include this cohort in its surveillance program. These companies should ensure their financial statements comply with Australian Accounting Standards and that they are complying more broadly with their reporting obligations under the Corporations Act. Auditors have been reminded to report non-compliance in lodging financial reports through the appropriate channels.
Since financial years ending on or after 30 June 2024, superannuation trustees are required to lodge audited financial reports for most registrable superannuation entities (RSEs) with ASIC.
ASIC is finalising its review of approximately half of all lodged RSE financial reports including five RSE audit files. The remainder will be reviewed during the 2025-2026 program.
ASIC has identified the following focus areas:
- Measurement and disclosure of investment portfolios; and
- Disclosure of marketing and advertising expenses.
Sustainability reporting in accordance with AASB S2 Climate-related disclosures is mandatory for Group 1 entities with financial years commencing on or after 1 January 2025. Impacted entities should begin work as soon as possible if they have not already implemented plans and procedures to meet the mandatory reporting requirements.
ASIC will review 31 December 2025 sustainability reports as part of the 2025-26 surveillance program. ASIC has emphasised a proportionate and pragmatic approach to supervision and enforcement as the sustainability requirements are being phased in.
To assist preparers and stakeholders, ASIC:
- Published Regulatory Guide 280 Sustainability Reporting (RG280).
- Included resources in a sustainability reporting section on its website.
Financial reports and audit surveillance program
ASIC reviews the full-year financial reports of the entities identified above following a risk-based approach taking into account a range of market data, reported financial information, relevant ASX announcements and other ASIC intelligence.
The findings from ASIC’s financial reporting surveillances largely determine the selection of related audit files for review by ASIC.
In October 2024, ASIC released its annual financial reporting and audit surveillance report for the 12 months to 30 June 2024.
ASIC reviewed 188 financial reports and 15 related audit files (at 11 audit firms) during the most recent program.
ASIC had findings in 25 of those financial reports, which resulted in entities making adjustments of $1,886 million to previously released financial information.
Most of the financial reports related to listed entities.
Of the 25 entities, 16 also made, or agreed to make, changes to their Operating and Financial Review (OFR) disclosures.
ASIC surveillance findings – 1 July 2023 to 30 June 2024
Overview of the areas in which issues were raised from ASIC’s 2023-24 surveillance program as reported by ASIC in October 2024.
Download reporting update
ASIC focus areas: 30 June 2025
Guide for directors and preparers of financial statements (25RU-04)
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