ASIC Focus Areas for 2026-27 Financial Year

The Australian Securities and Investments Commission (ASIC) has released its focus areas for 2026–27 Financial Year, signalling a continued push toward higher-quality financial reporting, stronger audit oversight, and more rigorous sustainability disclosures.

‘Our surveillance programs reinforce the importance of high-quality reporting and audit. Reliable financial information is critical to transparency in Australia’s capital markets and informed investment decisions by investors’.

ASIC Commissioner Kate O’Rourke

Here are ASIC’s key focus areas that businesses should be aware of for the 2026–27 reporting cycle.

1. Greater Attention on Judgement Areas in Financial Reporting.

ASIC’s enduring focus areas remain centred on areas requiring significant management judgement. For the 2026–27 Financial Year (F72026-2027), regulators will pay close attention to:

Revenue recognition: The process determining when and how revenue should be recorded in a company’s financial statements.

Asset impairment assessments: The process determining whether an asset is worth less than the value recorded on a company’s books.

Recognition and measurement of financial instruments: The process of recording and valuing financial items like loans, investments, and debts in a company’s accounts.

Provisions and contingent liabilities: Money a business may need to pay in the future for obligations or risks, such as lawsuits, warranties, or cleanup costs. Provisions are likely costs that can be estimated, while contingent liabilities are possible costs that are still uncertain.

Who will be reviewed?

For 2026-27, ASIC will review the financial reports of listed and unlisted companies, Registrable Superannuation Entities (RSEs) and Managed Investment Schemes (MISs).

What is an RSE?

An RSE is a superannuation fund that must be registered with APRA (the Australian Prudential Regulation Authority). They manage superannuation money specifically for retirement purposes.

What is an MIS?

A managed investment scheme is an arrangement where:

1. Investors pool money together,
2. A professional manager controls the investments, and
3. Investors receive returns from the pooled investment.

These are regulated under the Corporations Act by ASIC.

ASIC specifically highlighted disclosures relating to decommissioning and site restoration obligations. That is, ASIC plans to examine whether companies are properly estimating the future costs of shutting down operations and repairing affected sites.

2. Sustainability Reporting Under Greater Scrutiny.

Whilst Australia’s new climate disclosure framework commenced last year, FY2026–27 marks the first major review cycle where ASIC is assessing lodged reports and disclosure quality.

After reviewing early sustainability reports submitted under the framework, ASIC has published preliminary observations to help 30 June reporters prepare their first lodgements.

On top of this, you may also refer to ASIC’s updated FAQs page for further guidance.

What are the pain points?

In particular, ASIC identified several recurring themes in early reports, including the following:

Unclear governance disclosures;
Insufficient explanation of climate-related assumptions and estimates;
Weak linkage between sustainability disclosures and financial statements;
Generic wording that lacks business-specific detail; and
Inconsistent materiality assessments.

For businesses, climate disclosures are increasingly being subject to governance, documentation, and assurance expectations similar to traditional financial reporting.

An Example In Action: Cross Referencing

If a company’s sustainability report refers readers to information in another document, website, or report, the company still must make sure all required disclosures are properly provided and accessible.

What is changing?

Sustainability Reporting Expands

Group 2 entities will enter Australia’s mandatory climate reporting regime for financial years starting on or after 1 July 2026, extending obligations beyond the large organisations already captured under Group 1.

Relief Measures Continue

ASIC has granted reporting relief for certain related schemes and continues to update its register of sustainability reporting relief decisions.

Reforms Under Consideration

The Federal Government is consulting on measures to reduce reporting burdens while maintaining core sustainability requirements. ASIC has confirmed it will continue overseeing the mandatory climate reporting framework.

3. Audit Scrutiny is Expanding.

All in all, ASIC will review 25 audit files during FY2026–27 across listed entities, unlisted companies, Registrable Superannuation Entities (RSEs), and now Managed Investment Schemes (MISs).

Importantly, ASIC is continuing to prioritise:

Auditor independence: An ‘independence threat’ is anything that could compromise the objectivity of auditor.
Professional scepticism.
Compliance with annual statement obligations.
Higher-risk areas requiring estimation and judgement.

This follows recent ASIC reports that identified weaknesses in auditor independence and conflicts of interest processes.

As a result, businesses should expect auditors to request stronger evidence, more detailed assumptions, and tighter documentation, supporting both financial and sustainability disclosures.

What Businesses Should Do Now

Consequently, with ASIC increasing scrutiny across financial reporting, audit quality, and sustainability disclosures, organisations should act early rather than waiting for year-end reporting deadlines.

Key priorities include:

Reviewing climate governance frameworks and disclosure controls.
Ensuring sustainability disclosures are entity-specific and evidence-based.
Strengthening documentation supporting judgements and estimates.
Aligning sustainability reporting processes with finance and audit functions.
Preparing for increased assurance and regulatory review activity.

We’re here to help.

The FY2026–27 focus areas reinforce a broader regulatory trend: sustainability reporting is becoming embedded within mainstream corporate reporting and governance expectations.

Businesses that build robust reporting processes now will be better positioned to manage compliance risk, investor scrutiny, and future assurance requirements.

Aintree Group works with organisations to help navigate compliance requirements, improve reporting frameworks, and prepare for increased ASIC scrutiny across financial and sustainability reporting obligations. Reach out today to get started.

Get started

This is general advice only and has not been prepared with your individual situation or needs in mind. For personalised advice, we highly recommend that you seek professional guidance from a qualified adviser.

ASIC’s 2026-2027 Financial Year Reporting Focus: What Businesses Need to Prepare for Now