Webinar: Everything You Need To Know For FY25 Financial Reporting

Carmen Ridley: AFRS, David Francis
June 23, 2025
Financial Reporting Update Webinar: Essential Changes for FY25

Presented by Carmen Ridley | Hosted by David Francis

Recorded: 17 June 2025 

Use the timestamps below  to navigate directly to areas in the webinar recording most relevant to your organisation’s needs.

Access the Slides 

Executive Summary
Bentleys’ annual Financial Reporting Update was presented by Carmen Ridley from Australian Financial Reporting Solutions. She delivered key insights on accounting standards, regulatory updates, and contemporary financial reporting issues relevant for the 30 June 2025 reporting period. The session offers practical advice and real-world considerations for CFOs, finance teams, and audit professionals across industries, with a strong focus on both for-profits and not-for-profits (NFPs).

 

Key Takeaways:

  • Current vs non-current liability classification amendments (AASB 101) require urgent covenant review (before 30 June)
  • ASIC’s focus areas emphasise asset impairment and entity-specific disclosures
  • Greenwashing penalties escalated – $34.7M total from three ASIC court cases
  • Going concern isn’t just for auditors – management must document an assessment and revisit assumptions critically.
  • If you’re making bold sustainability claims, check whether they imply accounting consequences.

 

0:00 – Welcome and Introduction
David Francis opens the session with housekeeping and context. Carmen introduces the structure of the webinar: key accounting standards, regulatory updates, contemporary issues including sustainability reporting, and upcoming changes.

 

04:10 – Accounting Standards: What’s New for FY25

Carmen outlines four new accounting standards effective 30 June 2025, focusing mainly on:

  • AASB 101 Amendments (current vs non-current liabilities)
  • AASB 2022-10 (NFP asset valuation)

In this section, she explores the resurgence of sale and leaseback transactions in the current economic climate, warning that these often fail the criteria for “sale” under accounting rules—leading to unexpected outcomes in financial statements.

 

07:30 – Current vs Non-Current Liabilities: AASB 101 Deep Dive

A major focus of the session, Carmen examines new, more explicit guidance on classifying liabilities, particularly when covenants are involved. Using real-world examples, she explains how timing, breaches, waivers, and lender grace periods influence whether a liability can be classified as non-current.

In this section, Carmen gives practical advice for those facing covenant breaches at year-end: assess early, talk to your lender before 30 June, and secure documentation to avoid triggering current classification. Carmen also provides information about additional disclosure requirements.

 

22:09 – Going Concern Considerations

Carmen segues into going concern issues, noting these often link directly to how liabilities are classified. She discusses the limited guidance in accounting standards and introduces practical resources from the UK Financial Reporting Council.

In this section, she provides practical guidance on how directors and management can structure going concern assessments and cautions against optimism bias when making forward-looking assumptions.

 

29:25 – AASB 2022-10: Valuing NFP Public Sector Assets

This standard, relevant for NFP public sector entities, introduces clarifying guidance on:

  • Highest and best use (when to assess it)
  • Financial feasibility
  • Use of unobservable inputs
  • Application of the cost approach

In this section, Carmen flags the importance of ensuring valuers explicitly incorporate AASB 2022-10 in their reports to avoid rework or misalignment in asset valuations.

 

36:40 – Agenda Decisions and Sustainability-Related Accounting
Carmen unpacks recent agenda decisions from the IFRS Interpretations Committee that are shaping financial reporting practice:

  • In this section, she discusses how public climate commitments might create a constructive obligation, potentially triggering a provision under AASB 137 – though this depends heavily on facts and circumstances.
  • Carmen reminds attendees that even if no provision arises, climate commitments may still affect assumptions about asset lives, impairment, and depreciation.

 

45:15 – Accounting for Guarantees
Carmen covers another agenda decision from April 2025 about contractual guarantees – including where a parent entity provides a guarantee to a group entity. She encourages entities to carefully assess whether such guarantees fall under AASB 9, AASB 17, or AASB 137, noting these are often overlooked in practice.

 

48:27 – Regulatory Update: ASIC’s Enduring Focus Areas

This part of the session works through through ASIC’s focus areas for FY25 audits, introduced in a May 2025 media release:

  • Impairment of assets (including goodwill and deferred tax assets)
  • Provision adequacy (e.g. make-good, restructuring)
  • Expected credit losses (especially under current economic pressure)
  • Disclosures (clear, entity-specific, and forward-looking)

In this section, she emphasises the importance of proactive processes for identifying subsequent events and avoiding boilerplate disclosures.

 

57:35 – Not-For-Profit Sector: ACNC and Portability

Carmen highlights evolving expectations for NFPs, including:

  • Changes in portable long service leave schemes in NSW (effective 1 July 2025)
  • The need for improved disclosure around related party transactions

She also references ACNC guidance and reporting expectations, particularly for charities operating under general purpose financial reporting.

 

1:01:40– Contemporary Issues and Tax Developments

This segment of the session covers a range of topical developments including:

  • Pillar 2 global minimum tax and its implications for current tax provisions in the financial statements under AASB 112
  • The financial reporting impact of tariffs, especially on inventory valuation, impairment, and contract provisioning
  • CEDS (Consolidated Entity Disclosure Statement) requirements, which continue to be mandatory for public companies
  • In this section, Carmen discusses Accounting Position Papers and provides guidance on how to prepare one, and when they should be used

 

1:20:17 – Sustainability Reporting

Here, Carmen discusses developments in sustainability and ESG reporting.

  • ASIC Greenwashing update and the importance of supportable green statements
  • Enforcement penalties have transformed dramatically, with ASIC’s fines escalating from $13,000-$39,000 infringement notices to $34.7 million in total court penalties across three cases.
  • Carmen discusses the mandatory climate reporting regime and how obligations have expanded rapidly following September 2024 Corporations Act amendments, with staggered implementation from December 2025 for the largest entities to June 2028 for smaller entities.

 

1:38.04 – Common Queries
Carmen discusses some of the common accounting questions she receives.

  • Carmen highlights that revenue recognition generates the most queries
  • Not-for-profits need to determine the correct standard (AASB 15 vs AASB 1058) and all entities required to define performance obligations before recognition timing.
  • Over-time recognition under AASB 15 is a “privilege” requiring specific criteria, unlike the old standards.

 

Essential Resources

Finding Current Standards

 

Sustainability Resources

 

Going Concern Assessment

 

Key Questions for Your Next Board Meeting

  • Covenant Compliance: When were our bank covenants last tested, and what’s our current position?
  • Sustainability Readiness: Even if not yet required, how are we preparing for climate reporting?
  • Green Claims: Can we substantiate every environmental statement in our marketing materials?
  • Subsequent Events: Do we have formal processes to identify material post-balance date events?
  • Position Papers: For complex transactions, do we have documented accounting rationale?

 

Want to know more about how Bentleys can help you?

For assistance with your financial reporting requirements, contact your local Bentleys audit and assurance advisor. We’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

 

 

 

 

Send enquiry

We’d love to hear from you. Complete the form and someone from our team will contact you soon.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
This field is hidden when viewing the form
Would you like to receive e-newsletters? You can unsubscribe at any time.