New Requirements Effective For 31 December 2025

For 31 December 2025, there is only new accounting standard which is mandatory for the first time and this standard is expected to have little impact for the majority of our clients.

AASB 2023-5 Amendments to Australian Accounting Standards – Lack of Exchangeability [AASB 1, AASB 121 and AASB 1060]:

• Improves the usefulness of information provided to users of financial statements by requiring entities to apply a consistent approach to determining whether a currency is exchangeable into another currency and the spot exchange rate to use when it is not exchangeable.
• Extends the exemption from complying with the disclosure requirements of AASB 121 for entities that apply AASB 1060 to ensure Tier 2 entities are not required to comply with the new disclosure requirements in AASB 121 when preparing their Tier 2 financial statements.

These changes are expected to impact only those entities that conduct transactions in the currency of a hyperinflationary economy and are therefore directly exposed to the effects of hyperinflation in their operations.

In July 2025, the IFRS Interpretations Committee released an agenda decision clarifying that when assessing whether an economy is hyperinflationary, reporting entities must consider both the indicators listed in IAS 29 / AASB 129 Financial Reporting in Hyperinflationary Economies and any other relevant factors that may be present.

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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.