iscover AASB’s agenda consultation under fire from IPA
BusinessThe Institute of Public Accountants sounds the alarm on the Australian Accounting Standards Board’s latest agenda consultation, calling it ineffective and poorly timed in light of its impending merger.
The Institute of Public Accountants (IPA) has questioned the timing and effectiveness of AASB’s latest agenda consultation, Invitation to Comment 57 (ITC 57), in the face of the proposed creation of External Reporting Australia (ERA) through a merger between AASB, Auditing and Assurance Standards Board (AUASB) and Financial Reporting Council, which could come into effect later this year.
The institute highlighted the brevity of the consultation document compared to previous agenda consultations. In its 12 April submissions to the consultation, the institute slammed the AASB for the lack of reasons for considering projects as part of its work program, comparing the 37-page ITC 46 Agenda Consultation 2022-2026 to the eight-page ITC 57, which it found includes a reproduction of the AASB’s Work Plan as at 16 December 2025.
“We find the brevity of ITC 57 opens the AASB to criticism that it lacks thought leadership and is relying on stakeholders to undertake its role and function,” its submissions read.
As reported by Accounting Times in 2023, the treasury announced the potential merger to form ERA, proposed through the Financial Reporting System Reform Bill 2026, which was moved to the Senate on 11 March and could commence later in the year.
Earlier in April, CA ANZ and CPA called for more rigorous and transparent due process requirements to be embedded in the proposed legislation, to provide clarity and safeguards around intervention powers, calling for mandatory consultation in the development of standards.
“While we welcome the opportunity to contribute, the timing of this consultation is questionable given the impending new standard-setting arrangements under the ERA,” said Andrew Conway, chief executive at IPA Group.
IPA also identified shortcomings in the consultation process, including limited accessibility for in-person roundtables and the structure of virtual sessions. “Effective consultation is not just about gathering feedback, it’s about facilitating and promoting meaningful dialogue between stakeholders,” Conway said.
“A more integrated and inclusive approach, combining in-person and virtual participation, would better support robust discussions and inform a coordinated national standard-setting agenda,” he added.
While the institute expressed support for projects outlined in the AASB Work Plan, it called for greater prioritisation of key initiatives, particularly regarding a lack of progress in the AASB S2 Proportionality project for climate reporting.
“It is critical that this project be elevated to a high priority to support Group 3 entities, which will face the greatest challenges in implementing climate-related disclosure requirements,” Mr Conway said.
The institute concluded that there should remain a strong focus on research in the AASB’s standard-setting function.
“Research must remain a core component of the AASB’s work to ensure evidence-informed decision-making and continued leadership in financial reporting,” Conway said.
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Carlos Tse
Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.
