Australian Treasurer Jim Chalmers has unveiled a consultation paper aimed at revamping Australia’s financial reporting system.
The proposal outlines the creation of a unified body that would oversee accounting, auditing, sustainability, and assurance standards, streamlining the current fragmented structure, according to Financial Standard.
Chalmers highlighted that this reform is part of the Albanese government’s broader agenda to enhance economic efficiency and productivity. “The Albanese government is streamlining Australia’s financial reporting bodies to help build a more competitive, dynamic, and productive economy,” he explained.
The proposed entity would merge the functions of the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB), and the Financial Reporting Council (FRC). Governed by a board appointed by the government, the new body would be responsible for formulating and advising on various standards, playing a pivotal role in maintaining market integrity and investor confidence.
The consultation seeks public feedback on the governance and structure of this new statutory body. It is expected to have three technical committees—focusing on accounting, sustainability reporting, and auditing and assurance standards—to directly set and formulate standards. This setup is designed to enhance regulatory consistency and reduce duplicative efforts across the financial reporting landscape.
“Our standard-setting institutions play an important role underpinning the integrity of markets and investor confidence,” Chalmers stated. “A key focus of the proposed new architecture is ensuring the new body will have the flexibility to meet evolving priorities and issues. This reform will provide a one-stop shop for the development and issuance of standards. It will help to increase regulatory consistency, reduce unnecessary costs, and avoid duplication when it comes to financial reporting.”
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