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The Australian Securities & Investments Commission (ASIC) has released its Annual financial reporting and audit surveillance report 2023, which summarises ASIC’s findings from the financial reporting and audit surveillance program for the period 1 July 2022 to 30 June 2023.

A total of 180 financial reports were reviewed comprising of ASX-listed entities and large unlisted entities, and 15 related audit files at 11 audit firms in the surveillance program. The majority of the findings from the financial report surveillances related to insufficient disclosure of material business risks in the operating and financial review (OFR), impairment of assets, revenue recognition and other financial report disclosures. The report also included ASIC’s findings in relation to the adequacy of disclosures on possible impact of applying the new insurance accounting standard.

Although the majority of public sector entities are not subject to ASIC regulation, the information contained will be of use across a broad spectrum of stakeholders, including preparers, reviewers and users of financial information.

ASIC released its focus areas for financial reporting for the 31 December year end reporting. The focus areas highlight elements of financial reports and audits where ASIC has identified the most significant and common instances on non-compliance with Australian Accounting Standards or issues with the audit in the past and areas that are emerging as more significant challenges for preparers.

Key focus areas for 31 December 2023 reports are:

• asset values
• provisions
• subsequent events
• disclosures
• new insurance accounting standard
• other matters.

Although NSW public sector entities are not regulated by ASIC, the guidance provided around the focus areas will still be applicable to the NSW public sector.

The NSW Treasury has issued the following pronouncements:

TD 23-24 ‘SDA Account financial reports’

This Treasury Direction specifies the mandatory requirements for preparation of financial reports for SDAs in accordance with section 7.8(2) of the Government Sector Finance Act 2018 (GSF Act). It applies to all SDAs within the meaning of section 1.4 of the GSF Act and to the responsible managers of those accounts for financial years ending on or after 30 June 2023.

TPG 23-17 ‘Disaster Cost-Benefit Framework’

The Disaster Cost-Benefit Framework (the Framework) sets how to undertake disaster resilience cost-benefit analysis (CBA). The Framework supplements and follows the principles and requirements of the NSW Government Guide to Cost-Benefit Analysis (TPG23-08) (CBA Guide), which applies to all NSW Government initiatives. This Framework addresses a recommendation of the 2022 NSW Flood Inquiry Final Report to develop, adopt and utilise a disaster cost-benefit framework to enable a more systematic prioritisation of investment options before, during and immediately following a disaster, with an initial focus on floods.

The Framework aims to make it easier to complete high quality and consistent disaster resilience CBAs which support decision making and well targeted investment. It identifies guiding principles to support development of initiatives that support disaster resilience as well as methods, data sources and standard parameters to support their appraisal. It includes mandatory requirements and recommended guidance that should be applied as relevant and practical, depending on the size, importance, and nature of the initiative.

TD 23-18 'Management of cash, banking and payments'

This Treasury Direction replaces TD22-30 ‘Management of cash, banking and payments’. It regulates the use of financial services (including banking services) provided under a state financial services agreement or otherwise and applies to all GSF agencies to which the financial services and arrangements provisions of Part 6 of the GSF Act apply, and to the accountable authorities and government officers of those GSF agencies, with the exception of New South Wales Treasury Corporation.

The Office of Local Government has issued the following pronouncements:

Circular 23-15 ‘Regulation amendments prescribing requirements for audit risk and improvement committees, internal audit and risk management’

The Local Government (General) Regulation 2022 (the Regulation) has been amended to give statutory force to key elements of the Office of Local Government’s (OLG) Guidelines for Risk Management and Internal Audit for Local Government in NSW (the Guidelines), with effect from 1 July 2024.

Councils and joint organisations will be required to report on their compliance with the Regulation in their annual reports from 2024-25 onwards.

Circular 23-13 ‘Release of the information and Privacy Commission’s follow up audit of councils' compliance with open access requirements in relation to returns of interest’

This circular refers to the Information and Privacy Commission’s (IPC) report on the outcome of its follow-up audit undertaken on councils’ compliance with the requirement to publish information in returns of interest lodged by councillors and designated persons on their websites. The IPC’s recent audit follows an earlier audit conducted in July 2021 which identified significant compliance failures.

The IPC’s report found that while there has been significant improvement in councils’ compliance with their obligations under the Government Information (Public Access) Act 2009 (GIPA Act) to publish information in returns of interests submitted by councillors and designated persons on their websites, some councils continue to be non-compliant. The report makes seven recommendations for councils to implement to promote openness, transparency, and accountability in relation to the disclosure of information in returns of interests.

Additional resources can be found on the IPC’s website - Information Access Guideline 1 (nsw.gov.au).

The NSW Ombudsman has published guidelines to assist agencies and public officials to understand the revised Public Interest Disclosures Act 2022 (PID Act), applicable from 1 October 2023. The guidelines are designed to help agencies and their staff handle public interest disclosures and meet the obligations under the PID Act.

Additional awareness materials are also available and can be accessed on NSW Ombudsman’s website.

The Independent Commission against Corruption has released a new research report examining the level of compliance with the NSW government’s Fraud and Corruption Control Policy.

This publication aims to assess compliance with NSW Treasury Circular TC18-02 ‘NSW Fraud and Corruption Control Policy’ and to identify any barriers that limit compliance. This publication aims to help agencies strengthen their ability to control fraud and corruption.

Topics discussed included:

AASB Meeting Highlights – 29-30 November 2023

• Subsidiaries without Public Accountability and AASB 1060
• ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information
• Not-for-profit (NFP) Private Framework
• IASB update
• post-implementation review (PIR) Income of NFP Entities (AASB 1058/AASB 15)
• forthcoming IASB Standard IFRS 18 Presentation and Disclosure in Financial Statements
• research update
• sustainability reporting.

AASB Meeting Highlights – 11 October 2023

• PIR process and NFP domestic PIRs – Income of NFP Entities
• new disclosures for Tier 2 entities
• PIR IFRS 15.

Latest news, accounting standards and work-in-progress documents from the AASB included:

Topics discussed included:

IASB Meeting Highlights –12-14 December 2023

• power purchase agreements
• maintenance and consistent application – hyperinflation
• second comprehensive review of the IFRS for SMEs standard
• disclosure initiative – subsidiaries without public accountability: disclosures
• climate-related risks in the financial statements
• rate-regulated activities.

IASB Meeting Highlights – 13-15 November 2023

• IFRS 9 Amendments to classification and measurement
• PIR of IFRS 9 – Impairment
• second comprehensive review of the IFRS for SMEs standard
• equity method
• business combinations under common control
• provisions
• primary financial statements
• subsidiaries without public accountability.

IASB Meeting Highlights – 25-26 October 2023

• second comprehensive review of the IFRS for SMEs standard
• primary financial statements
• rate-regulated activities
• dynamic risk management
• IFRS 9 Amendments to classification and measurement
• maintenance and consistent application – IFRIC update
• equity method
• disclosure initiative – subsidiaries without public accountability: disclosures.

Latest news from the IFRS Foundation included:

Topics discussed included:

IPSASB Meeting Highlights – 5-8 December 2023

• program and technical director’s report on work program
• natural resources
• measurement – application phase
• IPSAS 33 – limited scope update
• sustainability: climate-related disclosures
• natural resources – IFRS 6 alignment
• implementation update
• presentation of financial statements
• IFRIC alignment – narrow scope amendments
• task force meetings
• navigating IPSAS – practical support material
• other lease-type arrangements.

IPSASB Meeting Highlights – 26 October 2023

• sustainability reporting education session – materiality overview and materiality in practice
• IFAC panel on accountancy education – sustainability reporting project.

Recent news and publications from the IPSASB included:

Topics discussed included:

AUASB Meeting Highlights – 6 December 2023

• quality management standards and code of ethics
• climate-related financial disclosures
• Financial Reporting Council update
• less complex entities standard – approach in Australia
• listed entity and PIE (track 1) – audit reports
• listed entity and PIE (track 2) – alignment of definitions and key concepts with code of ethics
• fraud – ISA 240 ED
• IAASB strategy and work plan for 2024-2027
• audit evidence.

AUASB Meeting Highlights – 23 November 2023

• proposed ISSA 5000 – Review of AUASB submission to IAASB.

Latest news from the AUASB included:

Topics discussed included:

IAASB Meeting Highlights – 11-14 December 2023

• fraud
• listed entity and public interest entity (PIE)
• strategy and Work Plan 2024-2027
• IASB update
• sustainability (ED-5000)
• ISSB update
• audit evidence
• global reporting initiative update.

Latest publications from the IAASB included:

Topics discussed included:

APESB Meeting Highlights – 17 November 2023

• update on APESB’s Work program for 2023
• proposed revisions to APES 110 for Technology
• proposed amendment to APES 110 on reporting breaches
• international and other activities
• update on sustainability
• post-implementation review of APES 330 Insolvency Services
• proposed revised APES 310 Client Monies
• update on Parliament Inquiries relating to the accounting profession
• update from AUASB.

Latest news and media releases from the APESB included:

Topics discussed included:

IESBA Meeting Highlights – 4-8 December 2023

• strategy and work plan 2024-2027
• tax planning and related services
• use of experts
• sustainability
• PIE rollout
• collective investment vehicle pension funds and investment company complexes.

Latest news and publications from the IESBA included:

Treasury’s recent releases and other guidance included:

DPC released the following memos and circulars:

NSW Procurement Board’s recent Directions included:

Inquiries and Reports tabled in NSW Parliament included:

Inquiries and Reports tabled in NSW Parliament included:

Recent media releases and publications included:

Recent IPART papers and reports included:

Recent news included: