IFRS
Global base
The AASB adopts and adapts IFRS and ISSB standards for Australia.
Australian Accounting Standards Board (AASB)
What the AASB is, and its new sustainability role.
The AASB sets Australia's accounting standards and, since September 2024, its sustainability reporting standards. This page explains what the AASB stands for, how it relates to IFRS, and what its sustainability standards require.
What does the AASB do?
The Australian Accounting Standards Board (AASB) is the Australian Government body that sets accounting standards for entities reporting under the Corporations Act 2001. In September 2024 it issued the Australian Sustainability Reporting Standards: AASB S1, a voluntary standard for general sustainability disclosures, and AASB S2, the mandatory climate disclosure standard phased in from 1 January 2025.
2024
Sustainability remit
The ASRS, AASB S1 and AASB S2, issued in September 2024.
3
Reporting groups
AASB S2 phased in under the Corporations Act 2001, 2025 to 2027.
What does the AASB actually do?
Sets accounting standards. The AASB issues Australia's accounting standards, aligned with IFRS.
Issues sustainability standards. Since September 2024, the ASRS: AASB S1 and the mandatory AASB S2.
Localises global baselines. It adapts IFRS and ISSB standards to Australian law and practice.
Supports implementation. Guidance and consultation with Treasury, ASIC and the AUASB.
Why it matters
What does AASB stand for, and who runs it?
The name. AASB stands for Australian Accounting Standards Board.
The status. An Australian Government agency responsible for developing and issuing accounting standards.
The reach. Its standards apply to entities preparing financial reports under the Corporations Act 2001.
The new remit. Since 2024, sustainability reporting standards as well.
Translation process
How does the AASB relate to IFRS?
IFRS is the global base. The International Accounting Standards Board and the ISSB issue the international standards.
The AASB adopts and adapts. Australian standards follow IFRS, with local terminology, legal references and guidance.
Sustainability followed the same path. IFRS S1 and S2 became AASB S1 and AASB S2 in September 2024.
Comparability is the point. Investors can read Australian reports alongside international peers.
Measurement
What do the AASB sustainability standards require?
AASB S2 is mandatory. Climate-related financial disclosures across governance, strategy, risk management, and metrics and targets, phased from 1 January 2025.
AASB S1 is voluntary. General sustainability-related financial disclosures for entities that choose to report more broadly.
Assurance applies. Sustainability reports are subject to assurance that phases in alongside reporting.
The full picture. Our Australian Sustainability Reporting Standards hub covers the framework end to end.
Action items for AASB readiness
1. Check if it applies to you. Work through the thresholds and find your reporting group on the applicability page.
2. See where you stand. The readiness assessment scores your process in about three minutes.
3. See what you must disclose. The full AASB S2 disclosures checklist, with clauses and audit evidence.
4. Run the process. The CFO’s six-step operating guide, from the standard to an assurance-ready disclosure.
Glossary snapshot
AASB glossary snapshot
AASB. The Australian Accounting Standards Board.
ASRS. The Australian Sustainability Reporting Standards, issued by the AASB in September 2024.
AASB 101. The presentation standard for financial statements, one of the AASB’s accounting standards.
IFRS vs AASB. IFRS standards are the international base; the AASB adapts them for Australia.
FAQs
Australian Accounting Standards Board (AASB) FAQs
What does AASB stand for?
Australian Accounting Standards Board: the Australian Government body that sets accounting and sustainability reporting standards.
What is the difference between AASB and IFRS?
IFRS standards are the international base, issued by the IASB and the ISSB. The AASB adopts them for Australia, adding local terminology, legal references and effective dates.
Are AASB sustainability standards mandatory?
AASB S2, the climate standard, is mandatory and phased in under the Corporations Act 2001 from 1 January 2025 (Group 1), 1 July 2026 (Group 2) and 1 July 2027 (Group 3). AASB S1 is voluntary.
What are AASB S1 and AASB S2?
The two Australian Sustainability Reporting Standards: AASB S1 for general sustainability-related financial disclosures (voluntary) and AASB S2 for climate (mandatory).
Does the AASB set the reporting thresholds?
No. The thresholds and phase-in sit in the Corporations Act 2001; the AASB sets what must be disclosed.
Thresholds, reporting groups and first reporting periods, answered in one place.
Find out if AASB S2 applies to you.
ESG 101 hub
Explore related topics
Australian Sustainability Reporting Standards overview
Understand the ASRS framework and who sets it.
AASB S1 explainer
Get across general sustainability disclosure requirements.
AASB S2 explainer
Dive into climate-related risks, opportunities, and scenario analysis.
Do I need to comply with AASB S2?
Work out whether your organisation falls into the Australian climate reporting cohorts.
AASB S2 disclosures checklist
Refresh the fundamentals before diving into ASRS specifics.
The CFO's ASRS reporting operating guide
Plan how you’ll collect the qualitative inputs ASRS expects.
