iscover CA ANZ welcomes establishment of External Reporting Australia
BusinessThe professional body has welcomed the merger between AASB, AUASB and the Financial Reporting Council but is disappointed that practicing professionals have been excluded from the standards setting body.
Chartered Accountants ANZ (CA ANZ) has welcomed the passage of legislation which will establish a new regulatory body for reporting and audit, External Reporting Australia (ERA).
CA ANZ’s sustainability leader Karen McWilliams said the reform is an important step toward simplifying Australia's financial reporting framework.
“The new combined body includes a separate sustainability standard-setting board, alongside accounting and auditing and assurance," said McWilliams.
“A dedicated standard-setting board focused on sustainability is something we have advocated for since 2023."
McWilliams said it was important for sustainability standards carry the same weight as accounting and audit standards, both here and internationally, particularly now that mandatory climate-related disclosures are underway.
However, CA ANZ said it was disappointed that the standards setting body for External Reporting Australia will not include practising professionals.
Reporting and Assurance Leader Amir Ghandar said that during the consultation process, CA ANZ consistently advocated for the inclusion of practising professionals within the new standards setting body.
“Public confidence in Australia’s reporting framework depends on both independence and technical excellence. While we support safeguards aimed at protecting the independence of the ERA, we are disappointed that experienced Registered Company Auditors (RCAs) from firms with more than 50 RCA partners are not eligible to participate in the body."
CA ANZ said that eligibility settings should enable access to the broadest possible pool of highly qualified experts, regardless of where they work, supported by strong disclosure and conflict management safeguards.
“There is no other profession where a person’s technical expertise is excluded because of where they work," said Ghandar.
“We are pleased to see the legislation prescribes that board appointees must have technical expertise and practical, real-world experience, as well as processes and guardrails to enable the governing body and the technical boards to have distinct roles."
CA ANZ said it will continue to work closely with Treasury, ERA and stakeholders to support a smooth transition and ensure the new model delivers robust, globally aligned standards that sustain trust, investment and market integrity.
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Miranda Brownlee
Miranda Brownlee is the editor of Accountants Daily and Accounting Times, the leading sources of news, insight, and educational content for professionals in the accounting sector.
Miranda has over a decade of experience reporting on the financial services and accounting sectors, working on a range of publications including SMSF Adviser, Investor Daily and ifa.