Revised guidance on franchisor solvency statements

Wednesday, April 22, 2026

The AUASB has issued revised guidance statement GS 018 Franchising Code of Conduct – Auditor's Report on the solvency statement by a franchisor’s directors under the Franchising Code.

The revised GS 018 replaces the previous version issued in June 2015.  Changes include:

• Referring to the most recent Franchising Code of Conduct;
• Providing new guidance on information to consider in analysing and assessing solvency;
• Better distinguishing between going concern and solvency; and
• Updating the illustrative audit report for changes in the Australian Auditing Standards.