June 2025 financial reporting changes for For-Profit Entities

Versha Agarwal
17/07/2025

As the 30 June 2025 reporting deadline approaches, boards and finance leaders should ensure their organisations are positioned to meet regulatory expectations, manage payroll risk, and strengthen cyber resilience.

Here’s a summary of key considerations and supports to help your teams prepare.

ASIC focus areas for 30 June 2025 financial reports

ASIC (25-079MR)  has highlighted several areas requiring heightened judgement from preparers and directors:

  • Revenue recognition: especially where revenue spans multiple periods under AASB 15; assess performance obligations and timing.
  • Asset values and impairment: ensure robust impairment assessments and documentation.
  • Provisions and contingent liabilities: review measurement and disclosure.
  • Events after reporting period: disclose significant events transparently.
  • Disclosures in financial statements & Operating and Financial Review (OFR): ensure disclosures are meaningful and aligned with users’ information needs.

Tip: Maintain well-documented position papers that explain your key judgements and conclusions, supported by references to Australian Accounting Standards.

Sustainability reporting

With the introduction of mandatory sustainability reporting under AASB S2 for Group 1 entities, ASIC will review December 2025 sustainability reports and share market-wide observations.

Now is the time to:

  • Assess readiness to comply with emerging sustainability reporting requirements.
  • Align your processes and systems to support consistent and reliable ESG disclosures.

Key accounting standards to be aware of for 30 June 2025

Standard

Amendment / Focus

Practical support
AASB 101 & AASB 2020-1 
Classification of liabilities as current or non-current  Reassess loan agreements and
covenant terms
     
AASB 2022-6 & AASB 2023-3
Disclosures on non-current liabilities with covenants  Update financial statement templates
and disclosure checklists
 
     
AASB 16 & AASB 2022-5 Lease liability in sale & leaseback  Review existing sale and leaseback
arrangements
     
AASB 107, AASB 7 & AASB 2023-1 Supplier finance arrangements Identify any supplier financing and
prepare required disclosures
 
     
AASB 1060 & AASB 2024-1 Tier 2 disclosures on supplier finance  Align disclosures with Tier 2
requirements
 
     
AASB 13 & AASB 2022-10
Fair value of non-financial assets in the public sector For entities in the public sector only 

Tip: Use updated disclosure checklists and ensure finance teams are trained on the changes.

Payroll compliance and Fair Work

Payroll remains a complex risk area, especially under multiple awards and enterprise agreements.

Four pillars of a payroll health check:

  1. Award interpretation – confirm pay against the award.
  2. Wage code configuration – ensure payroll system setup drives correct payments.
  3. Leave accrual accuracy – especially in light of Portable Long Service Leave and state-based requirements.
  4. End-to-end process review – assess controls, risks and segregation of duties.

Fair Work is increasingly investigating payroll issues and using enforceable undertakings. Organisations should:

  • Undertake periodic payroll reviews and reconciliations. 
  • Document remediation processes aligned with the Fair Work remediation guide. 
  • Train payroll teams on award changes and interpretation. 

Tip: A targeted payroll review before year-end can identify risks early and help avoid costly remediation.

Cyber security trends and obligations

For-profit entities face rising cyber risks as they adopt AI, cloud services and integrated platforms.

Key risk areas:

  • Shadow AI – staff using unapproved AI tools.
  • Data exposure – accidental leaks of sensitive data.
  • AI-generated content – potential for legal or reputational issues.

Emerging regulatory requirements:

Regulation Obligation
Cyber Security Act 2024 Report ransomware payments within 72 hours and significant cyber incidents
   
Privacy Act & Notifiable Data Breaches (NDB) Scheme Notify OAIC and affected individuals of eligible data breaches; maintain breach registers

 

 

 

 

 

Tip: Strengthen internal governance by:

  • Developing an incident response plan.
  • Reviewing third-party providers’ security controls.
  • Training staff on secure data handling and AI use.

Key takeaways

To prepare for 30 June 2025 reporting, it’s important to stay across new accounting standards and ASIC’s focus areas. Ensure key judgements and assumptions are clearly documented, review your payroll processes and internal controls, and take steps to strengthen cyber resilience ahead of new reporting obligations.

If you need any help or guidance, our team is here to help. Contact the Crowe team to start a conversation about how we can support your business requirements.