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In this Funds Update for 22 May 2026:
- ASIC outlines key financial reporting, audit and sustainability focus areas for FY 2026–27
- ASIC calls on industry to strength cyber resilience measures against AI-driven cyber risks
- ASIC releases early observations on compulsory sustainability reporting regime
ASIC outlines key financial reporting, audit and sustainability focus areas for FY 2026–27
On 18 May 2026, ASIC announced its key financial reporting, audit and sustainability focus areas for FY 2026–27.
- Continuing ASIC’s enduring focus on financial reporting, ASIC will monitor areas where significant judgement from preparers of financial reports is required, including revenue recognition, assessment of asset impairment, recognition and measurement of financial instruments.
- ASIC will review 25 audit files, focusing on listed and unlisted companies and registrable superannuation entities, as well as a selection of managed investment schemes. ASIC will also monitor and report on audit firms’ implementation of remedial action in response to ASIC’s audit findings.
- ASIC will continue to focus on non-lodgement of financial reports by large proprietary companies.
You can find ASIC’s enduring focus areas for the 2026-27 financial year on this webpage.
ASIC calls on industry to strength cyber resilience measures against AI-driven cyber risks
On 8 May 2026, ASIC released an open letter to industry, calling on licensees and market participants to urgently strengthen their cyber resilience measures, as the evolution of frontier artificial intelligence (AI) intensifies the cyber risk environment.
ASIC urges entities to act now and not wait for perfect clarity to address the cyber threats posed by new AI models and emphasises the need for urgent, focused action using a first principles-based, approach. ASIC states that cyber risk management must be demonstrably effective and proportionate to the size, nature and complexity of a business, built on consistent execution of well-established controls, supported by clear governance and adequate resourcing.
ASIC releases early observations on compulsory sustainability reporting regime
On 18 May 2026, ASIC released its early observations on the compulsory sustainability reporting regime under Chapter 2M of the Corporations Act 2001 (Cth), which commenced in 2025. This regime aims to improve the quality, consistency and comparability of climate-related financial disclosures.
ASIC has observed an increase in the quantity and quality of climate-related financial information in the market compared to previous voluntary climate-related disclosures, noting that standardised requirements are driving more consistency and comparability. ASIC has also identified opportunities to strengthen the quality of reporting, and encourages entities to take into account further considerations when preparing reports.
Final observations from ASIC’s reviews will be published in the second half of 2026.
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