AASB
Meaning
Australian Accounting Standards Board (AASB) issues accounting and soon sustainability standards.
Australian Accounting Standards Board (AASB)
Understand AASB’s role in sustainability and ASRS.
The AASB issues accounting standards and will issue ASRS sustainability standards. This guide explains what AASB stands for, how it differs from IFRS, and what to expect from AASB sustainability disclosures.
What does the AASB do for sustainability reporting?
The Australian Accounting Standards Board (AASB) sets accounting standards for Australia and will issue ASRS sustainability standards aligned with IFRS S1/S2. It ensures Australian disclosures stay consistent with global practice while fitting local law.
IFRS liaison
Relationship
AASB is responsible for adopting and adapting IFRS and ISSB standards locally.
Sustainability drafts
Current focus
Exposure drafts on ASRS 1 and ASRS 2 released in 2024.
AASB sustainability focus areas
Adopting ISSB content. AASB translates IFRS S1/S2 content into Australian wording.
Consulting stakeholders. AASB works with Treasury, ASIC, AUASB, and industry to align timing.
Setting effective dates. Exposure drafts include proposed application dates and phase-ins.
Integrating with financial reports. AASB ensures sustainability disclosures connect with financial statements and assurance.
WHY IT MATTERS
Why the AASB matters for sustainability disclosures
Single source of truth. AASB ties sustainability disclosures to existing accounting governance.
Consistency. Businesses reporting under IFRS can follow similar structures for sustainability topics.
Compliance confidence. Knowing AASB timelines helps avoid last-minute reporting surprises.
International credibility. Investors see that Australia matches global best practice.
TRANSLATION PROCESS
How AASB converts IFRS sustainability standards into ASRS rules
- Review IFRS content. AASB analyses IFRS S1/S2 requirements line by line.
- Draft ASRS versions. Local terminology, references to Australian law, and guidance notes are added.
- Public consultation. Exposure drafts invite feedback from preparers, auditors, and investors.
- Final ASRS issuance. AASB publishes final ASRS standards and supports AUASB/ASIC in implementation.
MEASUREMENT
What sustainability disclosures AASB expects
- Governance detail. Explain board and management oversight of sustainability matters.
- Strategy + risks. Describe sustainability-related risks, opportunities, and business model impacts.
- Metrics + targets. Provide quantitative indicators, targets, methodologies, and assumptions.
- Connectivity with financials. Show how sustainability factors influence financial statements.
Action items for AASB readiness
Answer “what is AASB?” internally. Educate finance and sustainability teams on the board’s role.
Track IFRS vs AASB differences. Log deviations or extra guidance to update templates quickly.
Engage auditors early. Coordinate with assurance teams so sustainability disclosures line up with financial audits.
GLOSSARY SNAPSHOT
AASB glossary snapshot
AASB 101. Presentation of Financial Statements standard—now a reference point for integrating sustainability information.
ASRS. Australian Sustainability Reporting Standards that the AASB will issue.
IFRS vs AASB. IFRS is the international base; AASB adapts it for Australia.
FAQS
Australian Accounting Standards Board (AASB) FAQs
What does AASB stand for?
Australian Accounting Standards Board.
How is AASB different from IFRS?
AASB adopts IFRS standards but can add local guidance, effective dates, and references to Australian law.
Will AASB sustainability standards be mandatory?
Yes once Treasury finalises the climate reporting legislation; cohorts will adopt ASRS standards issued by AASB.
How do AASB standards relate to ASRS reporting?
AASB is the issuer of ASRS, so following AASB pronouncements keeps you compliant.
Drova RunSustainably keeps objectives, approvals, and disclosures aligned across finance and sustainability teams.
Ready to organise ASRS reporting in one place?
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.
What is ESG?
Refresh the fundamentals before diving into ASRS specifics.
ESG stakeholder engagement
Plan how you’ll collect the qualitative inputs ASRS expects.
