ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183

The ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183 gives relief from parts of the Corporations Act 2001 that would otherwise require amounts in certain reports to be stated exactly. It also gives relief from including an item in a financial report where the amount, including any comparative amount, would be nil.

In practical terms, the instrument is about presentation of figures in eligible reports. It lets an entity round amounts using specified rules, provided the conditions in the instrument are met. It also lets an entity leave out nil amount items from a financial report. The relief is not automatic in every circumstance. It can only be relied on if the report and the way rounding is applied satisfy the instrument’s conditions.

The instrument defines an "entity" broadly, but not universally. It covers a company, a registered scheme, a disclosing entity, a financial services licensee, a retail CCIV in relation to a sub-fund, and a registrable superannuation entity.

This means the instrument is aimed at entities already operating within the Corporations Act reporting framework. If your business is a sole trader, ordinary partnership, or another structure that is not preparing one of the eligible reports described in the instrument, this page is less likely to be relevant. The key first check is not your business size alone, but whether you are one of the listed entity types and whether you are preparing an eligible report.

The instrument applies to an "eligible report". That means:

1. a financial report, 2. a directors’ report required by section 298 or section 302 of the Corporations Act 2001, and 3. a profit and loss statement and balance sheet required by section 989B of the Act.

The practical trigger is that an amount is required or permitted to be stated exactly in one of those reports. If the amount falls within the instrument’s rounding rules, the entity may substitute a rounded amount instead of the exact amount, provided all conditions are met. For nil item relief, the trigger is narrower. It applies where a financial report would otherwise include an item but the amount, including any comparative amount, would be nil.

Businesses should separate these two forms of relief in their reporting process. Rounding relief can apply across eligible reports. Nil item omission is specifically framed for financial reports.

The most important practical step is working out the entity’s total assets at the end of the relevant period. If the entity prepares a consolidated balance sheet, use total assets in the consolidated balance sheet. If it does not, use total assets in its own balance sheet.

The instrument then applies different rounding factors depending on the type of disclosure and the asset band. Some disclosures have special rules regardless of the broader financial statement thresholds. The main categories are set out below in direct terms.

There is also a separate rule for certain listed directors’ report and accounting standard disclosures for entities with total assets of more than $1 billion. For those listed items, the rounding factor is $1,000. Those listed items include specified remuneration, auditor remuneration, key management personnel compensation, related party transaction disclosures, and certain directors’ report disclosures identified in the instrument.

For entities with total assets of more than $10 million but not more than $1 billion, the same listed items use a rounding factor of $1. For entities with total assets of less than $10 million, the instrument sets $1 for all other purposes.

Because the instrument splits out special disclosure categories from "all other purposes", businesses should not assume one threshold applies to every figure in the report. A reporting checklist should identify which figures fall into a special category and which fall into the general category.

The relief can only be used if the report applies the rounding method required by the instrument. If the amount is half or less than half the rounding factor, or half or less than half an alternative rounding factor, the report may show "nil" or the equivalent. In any other case, the amount must be rounded up or down to the nearest whole number multiple of the relevant rounding factor or alternative rounding factor.

The instrument also allows an alternative rounding factor, but only if it is smaller than the standard rounding factor and is one of the listed alternatives: 1/10th of 1 cent, 1 cent, $1, $1,000 or $100,000. If an alternative rounding factor is used for one amount, it must also be used for every other amount in the eligible report for which that rounding factor is relevant. This is a consistency rule, not a pick-and-choose option line by line.

Comparative figures must also be shown on the same basis. If you substitute a rounded amount for the current period, the corresponding amount for the comparative financial year or half-year must also be shown in accordance with the same rule.

There is a special presentation rule where amounts are rounded to the nearest $100,000. In that case, the amounts must be presented as a whole number of millions of dollars and one decimal place representing hundreds of thousands of dollars, with a clear indication that the amounts are presented in millions of dollars. The instrument gives examples such as using column headings or placing the word "million" after the amounts.

The instrument separately provides relief from including an item in a financial report where the amount that would be shown against the item, including any comparative amount, would be nil. This can apply where the amount would be nil because of the rounding rule described above, or otherwise.

The practical effect is that a financial report does not need to carry empty line items where both the current and comparative amounts would be nil. This can make the report cleaner, but the relief should still be used carefully. The instrument does not remove the need to present a report that remains understandable and compliant overall.

Businesses should note the wording here. The nil item relief is framed around the financial report, not every type of eligible report. If you are preparing a directors’ report or a section 989B profit and loss statement and balance sheet, check carefully whether you are relying on rounding relief only, nil item relief only, or both in different parts of the reporting package.

The instrument sets conditions for relying on the relief. These are not optional. First, the relevant eligible report must state that the entity is an entity to which the section applies and that amounts have been rounded off in accordance with the section. Second, each page where amounts have been rounded must clearly disclose the extent to which those amounts have been rounded.

There is also an important substantive condition. The substitution or rounding of amounts must not have the potential to adversely affect decisions about the allocation of scarce resources made by users of the financial report, including consolidated financial statements if any. It also must not have the potential to adversely affect the discharge of accountability by management, the directors of the entity, or the auditors.

That means the instrument is not simply a formatting shortcut. Before using it, businesses should consider whether the proposed rounding could obscure information in a way that matters to users of the report. If it could, the safer approach may be to use a smaller permitted alternative rounding factor or not rely on the relief for that presentation approach.

The instrument was made on 24 March 2026. It commences on the later of the day after registration on the Federal Register of Legislation and 1 April 2026.

Its operative application rule is separate from commencement. Part 2 applies to an eligible report for a financial year or half-year ending on or after 30 June 2026. For an eligible report for a financial year or half-year ending before 30 June 2026, the earlier ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 continues to apply despite its repeal.

The 2026 instrument is repealed at the start of 1 April 2031. Businesses preparing reports near transition dates should check both the reporting period end date and the instrument in force for that period, rather than relying only on the date the report is being drafted or lodged.

Before using the instrument in a live reporting process, a business should confirm four things. First, that it is an entity covered by the instrument. Second, that the document being prepared is an eligible report. Third, which asset band applies at the end of the relevant period, using the consolidated balance sheet if there is one. Fourth, whether any figures fall into one of the special disclosure categories with their own rounding rules.

It is also sensible to check whether your reporting template includes the required statement about rounding, whether page-level disclosures are in place, and whether comparative figures are being rounded consistently. If your report uses $100,000 rounding, confirm that the figures are presented in millions with one decimal place and clear labelling.

Finally, do a substance check. The instrument only works where the rounding does not have the potential to adversely affect user decisions or accountability. That is a judgement point, so finance teams, directors and advisers should be aligned before the report is finalised.