Feedback Invited: Proposed Australian Standard on Sustainability Assurance - ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001

Tuesday, September 17, 2024

The AUASB has released an Exposure Draft of a Proposed Australian Standard on Sustainability Assurance ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001 (ED 02/24) that outlines a proposed timeline for when information in a sustainability report prepared in accordance with Chapter 2M of the Corporations Act 2001 would be subject to audit and/or review. These proposals will affect preparers, users, and auditors, and it is important that we hear the views of a wide range of stakeholders. Comments close 16 November 2024.

ED 02/24 has been developed in response to schedule 4 of the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) (the Bill), which proposes a new mandatory climate disclosure framework for larger entities that prepare financial reports under Chapter 2M of the Act. The Bill has been passed by both Houses of Parliament by 9 September 2024 and is awaiting Royal Assent.

Among other matters, the Bill proposes to require that:

certain entities that prepare annual financial reports under Chapter 2M of the Act must prepare an annual sustainability report to accompany the financial report; and
the AUASB must specify the extent to which sustainability reports prepared in accordance with the Act for financial years commencing on or before 30 June 2030 must be audited and/or reviewed (assurance phasing).

Following extensive consultation and outreach on its March 2024 Consultation Paper, the AUASB’s ED 02/24 proposes an assurance phasing model that considers the likely:

maturity of reporting entities’ systems and processes;
demand for assurance over disclosures; and
capacity and capabilities of auditors and their experts during the initial years of reporting.

Stakeholders are encouraged to provide feedback on ED 02/24 by:

submitting a comment letter via the AUASB website; and
attending a roundtable discussion – details to be provided shortly.

Any queries about the Exposure Draft should be directed to [email protected].