ASIC remakes legislative instrument on rounding of financial statements

ASIC has remade its legislative Instrument on rounding in financial statements. 

This follows the expiry of the previous instrument, which reached its ten-year sunset date on 1 April 2026. 

The instrument, ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2026/183, permits entities to round amounts presented in financial reports and directors’ reports to the nearest thousand dollars. It replaces ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. 

What has changed?

The circumstances in which rounding is permitted, and the extent to which balances can be rounded, haven’t changed.  There has been one minor change, under which the new instrument has expanded its scope to cover disclosures required under s300C of the Corporations Act 2001 for registrable superannuation entities around key management personnel remuneration and non-audit services. 

Implications for 2026 financial reports

Directors’ reports and financial statements for periods ending on or after 30 June 2026 must now refer to ASIC Instrument 2026/183 rather than the previous Instrument 2016/191. For reporting periods ending before 30 June 2026, references should continue to be made to the previous instrument 2016/191.

When is rounding permitted?

Specific rules apply for:

• share-based payments
• auditors’ remuneration
• KMP compensation
• related party transactions