{"id":"F2025L01159","name":"ASIC Corporations (Non-Reporting Entities) Instrument 2025/436","slug":"asic-corporations-non-reporting-entities-instrument-2025-436","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106929,"registerId":"commonwealth-F2025L01159-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Non-Reporting Entities) Instrument 2025/436","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Non-Reporting Entities) Instrument 2025/436\n\nI, Claire LaBouchardiere, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\nDate 19 September 2025\n\nClaire LaBouchardiere\n\nContents\n\nPart 1—Preliminary 3\n\n1 Name of legislative instrument....................................3\n\n2 Commencement...............................................3\n\n3 Authority....................................................3\n\n4 Simplified outline of this instrument...............................3\n\n5 Definitions...................................................3\n\nPart 2—Order 4\n\n6 Relief for entities that are not reporting entities.......................4\n\nPart 3—Repeal 5\n\n7 Repeal.......................................................5\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Non-Reporting Entities) Instrument 2025/436.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation.\n\n> Note: The register may be accessed at www.legislation.gov.au.\n\n3 Authority\n\nThis instrument is made under subsection 341(1) of the Corporations Act 2001.\n\n4 Simplified outline of this instrument  \n\n| This instrument sets out an exemption from the financial reporting requirements under Part 2M.3 of the Act so that an entity that is not a reporting entity under the accounting standards can comply with the same recognition and measurement requirements in relation to a financial report that apply to reporting entities. |\n| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n5 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nmeasurement requirement means a requirement in an accounting standard that is relevant to working out the cost or other value to be attributed to an asset, liability, revenue, expense or other item that is covered by a recognition requirement.\n\nrecognition requirement means a requirement in an accounting standard that an asset, liability, revenue, expense or other item is to be expressly reported on, or incorporated in amounts expressly reported on, in a financial statement to which the standard relates.\n\nreporting entity has the same meaning as in Accounting Standard AASB 1057 Application of Australian Accounting Standards.\n\n  \n\nPart 2—Order\n\n6 Relief for entities that are not reporting entities\n\nRelief\n\n(1) A company or registered scheme (each a non-reporting entity) that is not a reporting entity does not have to comply with subsection 292(1), subsection 296(1) and section 297 of the Act in relation to a financial report for a financial year to the extent that those provisions require the financial report to comply with a recognition requirement or a measurement requirement that would not have applied to a reporting entity.\n\nWhere relief applies\n\n(2) The relief in subsection (1) is available where the non-reporting entity takes all reasonable steps to ensure that the financial report complies with all recognition requirements and all measurement requirements as if it were a reporting entity.\n\nPart 3—Repeal\n\n7 Repeal\n\nThis instrument is repealed at the start of 1 October 2030.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument creates a temporary, self‑contained exemption for non‑reporting entities rather than amending the Corporations Act. It defines its own scope and conditions (s4–s6) and sets a repeal date (s7); there is no text in the instrument indicating an expansion or contraction of scope from a prior statutory baseline."},"complexity_factors":["Dependence on external accounting standards and the defined term 'reporting entity' in AASB 1057 — requires cross‑referencing non‑statutory materials to determine scope (s5).","Key operative language uses conditional and comparative phrasing ('to the extent that', 'would not have applied to a reporting entity') that creates a counterfactual assessment burden for preparers and auditors (s6(1)).","'All reasonable steps' is a facts‑and‑circumstances standard that leaves room for interpretive and enforcement discretion by ASIC (s6(2)).","Interaction with multiple Corporations Act provisions (subss 292(1), 296(1), s297 and Part 2M.3) means preparers must map statute to accounting standards when producing reports (s6(1)).","Time limitation / sunset date (repeal 1 Oct 2030) imposes planning and transitional considerations for entities and advisers (s7).","Relief is narrow (applies only where recognition/measurement requirements would not apply to reporting entities) which may produce edge cases and necessitate professional advice (s6(1))."],"plain_english_summary":"This instrument lets companies and registered schemes that are not \"reporting entities\" avoid parts of the Corporations Act that would force them to follow recognition or measurement requirements that wouldn’t apply to reporting entities; relief is available only where the entity takes all reasonable steps to apply recognition and measurement rules as if it were a reporting entity (s4, s6). ASIC (by delegate) made the instrument under s341(1); affected entities bear the compliance burden and any costs. The instrument expires 1 October 2030 (s7)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: providing targeted relief for non-reporting entities from specific financial reporting requirements. The scope has not expanded beyond this narrow technical adjustment to accounting compliance obligations."},"complexity_factors":["Very short instrument (7 sections, approximately 1.5 pages)","Only 4 defined terms in section 5","Single operative provision (section 6) with straightforward conditional structure","No cross-references to other legislation beyond basic authority and subject matter provisions","Simple sunset clause (automatic repeal in 5 years)","No nested exceptions or complex conditional logic"],"plain_english_summary":"This instrument gives companies and registered schemes that are non-reporting entities a limited exemption from certain recognition and measurement requirements in the Corporations Act, provided they take all reasonable steps to apply the same recognition and measurement rules as if they were reporting entities. It reduces compliance burdens for smaller entities while keeping broad consistency with reporting-entity accounting, and automatically expires on 1 October 2030."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-non-reporting-entities-instrument-2025-436","history":"/api/acts/asic-corporations-non-reporting-entities-instrument-2025-436/history","analysis":"/api/acts/asic-corporations-non-reporting-entities-instrument-2025-436/analysis","conflicts":"/api/acts/asic-corporations-non-reporting-entities-instrument-2025-436/conflicts","importantCases":"/api/acts/asic-corporations-non-reporting-entities-instrument-2025-436/important-cases","documents":"/api/acts/asic-corporations-non-reporting-entities-instrument-2025-436/documents"}}