Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p55
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 55/76)
Character Range: 188727–191996

issue of AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities.  They included considering feedback on an AASB Consultation Paper Consolidation of Subsidiaries by Superannuation Entities (September 2007) and the consolidation proposals in ED 179 and ED 223.  During that process, the AASB considered a number of different ways in which a parent superannuation entity could treat a subsidiary in its consolidated financial statements, including:
(a)                   on a full fair value basis that involves all assets and liabilities, whether recognised or unrecognised in the separate financial statements of the parent or a subsidiary, being measured at fair values;
(b)                   on a basis that involves all assets and liabilities recognised by a subsidiary being measured at fair values when fair value is required or permitted under the relevant Australian Accounting Standards;[16]
(c)                   as per (b) above with the addition, when applicable, of a balancing item in relation to subsidiaries.[17]  That balancing item would comprise:
(i)                     acquired goodwill remaining at period end;
(ii)                   changes in internally generated goodwill associated with subsidiaries subsequent to their acquisition; and
(iii)                 measurement differences resulting from subsidiaries' assets and liabilities being recognised in consolidated financial statements at amounts other than their fair values adjusted for transaction costs;
(d)                   in accordance with AASB 3 and AASB 127,[18] under which a subsidiary's identifiable assets and liabilities are recognised in the consolidated financial statements at their fair values at the subsidiary's date of acquisition, and subsequent to acquisition, a subsidiary's assets and liabilities are recognised in accordance with relevant Australian Accounting Standards, which treat the fair values of assets or liabilities acquired in business combinations as 'cost' for the purposes of subsequent accounting;
(e)                   a proportionate consolidation model that ensures the net asset amounts reported in the parent's separate and consolidated financial statements are the same; and
(f)                    recognition of net investments in subsidiaries as a single line item with detailed note disclosure.
BC170        In relation to ED 179, the AASB decided that a parent superannuation entity would be best served by recognising in its consolidated statement of financial position all assets and liabilities of a subsidiary, whether recognised or unrecognised in the statement of financial position of the subsidiary.
BC171        In light of the comments received on ED 179 from respondents the AASB decided, consistent with ED 179, that ED 223 should propose that a parent superannuation entity present consolidated financial statements.  However, in contrast to ED 179, the consolidated financial statements would be prepared in accordance with AASB 3 and AASB 10, including in relation to accounting for acquired goodwill.  Superannuation entities would also be required to apply the fair value option to measuring non-controlling interests at inception, without subsequent remeasurement, in accordance with AASB 3.
BC172