New rounding legislative instrument for 30 June 2026 financial statements
New rounding legislative instrument for 30 June 2026 financial statements
On 27 March 2026, the Australian Securities and Investments Commission (ASIC) remade its rounding relief instrument because it had a ten-year sunset date and had expired. The new instrument expires in five years’ time on 1 April 2031.
ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2026/183 (LI 2026/183), which deals with circumstances in which entities can apply rounding in the financial report and the directors’ report, replaces ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 (LI 2016/191).
Key dates
- Financial and half-years ending before 30 June 2026 – Apply LI 2016/191 – Despite it expiring 1 April 2026, it still applies for these periods
- Financial and half-years ending on or after 30 June 2026 – apply new LI 2026/183.
Entities with 30 June 2026 half or annual periods must therefore update the rounding note in their 30 June 2026 annual and half-year financial reports and directors’ reports to refer to ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2026/183. Any old references to ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 must be deleted.
Scope extended to cover registrable superannuation entities (RSEs)
The scope of the new instrument has been extended to cover RSEs, including rounding under section 300C of the Corporations Act 2001 in remuneration reports and the additional non-audit services disclosure of RSEs.
What hasn’t changed - Rounding reminders
The circumstances in which rounding is permitted haven’t changed; however, we continue to see the following errors in practice:
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Error |
How to fix? |
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Entities not disclosing that they have applied the rounding relief when amounts have been rounded (for example, to the nearest thousand dollars ($’000)) |
Both the financial report and the directors’ report must include a statement to the effect that the relief in the applicable legislative instrument has been applied:
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Entities not disclosing that they have applied the rounding relief when amounts have been rounded to the nearest dollar (for example, this applies to most entities with assets of less than $10 million) |
Entities should either:
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Applying the incorrect rounding factor based on outdated asset numbers (this must be based on the current period assets) |
Refer to the tables below for the appropriate rounding factors to use for different disclosures. |
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Entities use inconsistent rounding across the financial statements, narrative disclosures in notes to the financial statements, and the directors’ report. Example: Entity ABC rounds an amount of $10,345,123 in the financial statements to the nearest thousand dollars (or $10,345 ($’000)). However, in the notes, the same item is reported as $10.3 million in the narrative disclosures. |
Describe the amount in the narrative disclosures as either the whole amount (unrounded), or $10,345,123. Otherwise, describe the amount in millions by rounding to three decimal points. For example, instead of $10.3 million, the amount is described as $10.345 million. |
Entities must use the same rounding factor in the financial statements and in the directors’ report. This applies unless another rounding factor is prescribed in the legislative instrument. The tables below illustrate the rounding rules for various items in the financial statements and directors’ report.
| Total assets in (consolidated) balance sheet | Rounding for most items | Rounding for specific items | ||
| More than (minimum) |
But not more than (maximum) |
Earnings per share | Director's report: 300(10)(g), 300(8), 300(9), 300(11B), 300(11C), 300(13)(a), 300A(1)(c), 300A(1)(e) |
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| $10,000,000 | $1 | 1/10th of 1 cent | $1 | |
| $10,000,000 | $1,000,000,000 | $1,000 | 1/10th of 1 cent | $1 |
| $1,000,000,000 | $10,000,000,000 | $100,000 | 1/10th of 1 cent | $1,000 |
| $10,000,000,000 | $1,000,000 | 1/10th of 1 cent | $1,000 | |
| Total assets in (consolidated) balance sheet | Rounding for specific items | ||
| More than (minimum) |
But not more than (maximum) |
Share-based payment | |
| Expense & Liabilities | Other information AASB 2.44 & 46, AASB 1060.164, 300(6)(c), 300(7)(d) 300(7)(e) |
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| $10,000,000 | $1 | 1 cent | |
| $10,000,000 | $1,000,000,000 | $1 | 1 cent |
| $1,000,000,000 | $10,000,000,000 | $1,000 | 1 cent |
| $10,000,000,000 | $1,000 | 1 cent | |
| Total assets in (consolidated) balance sheet | Rounding for specific items | |||
| More than (minimum) |
But not more than (maximum) |
Remuneration of auditors | Compensation of KMPs | Transactions between related parties |
| $10,000,000 | $1 | $1 | $1 | |
| $10,000,000 | $1,000,000,000 | $1 | $1 | $1 |
| $1,000,000,000 | $10,000,000,000 | $1,000 | $1,000 | $1,000 |
| $10,000,000,000 | $1,000 | $1,000 | $1,000 | |
What about a non-Corporations Act financial report?
Entities that prepare financial statements that are not in accordance with the Corporations Act 2001 can still round amounts in their financial statements. Although they are not bound by the rules in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2026/183, paragraph 51 of IAS 1 Presentation of Financial Statements requires disclosure about the level of rounding used in presenting amounts in the financial statements.
Examples of such entities include companies limited by guarantee that are registered with the Australian Charities and Not-for-profits Commission (ACNC). These entities prepare financial statements in accordance with the requirements of the Australian Charities and Not-for-profits Commission Act 2012, rather than Chapter 2M of the Corporations Act 2001, and are therefore not required to comply with the rounding requirements in LI 2026/183.
Need assistance?
Please contact our IFRS & Corporate Reporting team if you would like further information, or if you require assistance with any financial reporting matters.