Tier 2 amendments for financial instrument disclosures issued

Friday, March 14, 2025

The AASB has issued AASB 2025-2 Amendments to Australian Accounting Standards – Classification and Measurement of Financial Instruments: Tier 2 Disclosures to amend AASB 1060. The Standard is available on the Pronouncements Web Portal.

The amendments require a Tier 2 entity to disclose information related to financial instruments with contractual terms that could change the amount of the contractual cash flows based on the occurrence or non-occurrence of a contingent event. Such an event must not relate directly to changes in basic lending risks and costs. For example, the terms of a financial liability could specify changes in the cash flows if the entity reduces its carbon emissions.

AASB 2025-2 applies to annual periods beginning on or after 1 January 2026, with earlier application permitted.

The Standard can be located on the pronouncements portal under the Future Periods tab on the Accounting Standards page – see the "List" of amending pronouncements not yet fully compiled.