Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p59
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 59/76)
Character Range: 200318–203568

disclosure principles that particularly suit the superannuation environment, in place of the requirements of some of those other Standards.
BC186        Accordingly, ED 179 and ED 223 proposed that:
(a)                   a superannuation entity apply the disclosure principles and requirements in other applicable Australian Accounting Standards unless they:
(i)                     are not consistent with the measurement requirements for superannuation entities; or
(ii)                   address the same items or events as the principles or requirements in the replacement Standard;
(b)                   superannuation-specific guidance in relation to the disclosure principles and requirements in other Australian Accounting Standards be provided only where it is necessary to facilitate their reliable and consistent application; and
(c)                   a superannuation entity disclose information that provides users, particularly members and beneficiaries, with a basis for understanding transactions and events specific to superannuation entities that are relevant to the users' decision making needs.

Expense items
BC187        Most defined contribution members can choose the superannuation entity that manages their retirement benefits.  However, to make informed decisions, members need to be able to compare plans, particularly with respect to expenses.  Defined contribution members bear the costs associated with the management of their retirement benefits and the level of a plan's expenses can help provide a basis for understanding the level of fees that might be charged to members' accounts.
BC188        Employers would also be interested in information about the nature and amount of expenses, for example, in attempting to identify a default defined contribution plan for employees or because they sponsor defined benefit arrangements for their employees (and generally bear the costs of providing such arrangements).
BC189        In line with other Australian Accounting Standards, ED 179 and ED 223 proposed a superannuation entity disclose information about the nature and amount of expenses.
BC190        ED 179 and ED 223 also proposed that expense items of particular relevance, such as administration costs and trustees' fees, should be separately disclosed.  Most respondents to both exposure drafts who commented on the proposals supported requiring these disclosures.

Management expense ratio
BC191        The AASB considered whether a superannuation entity should be required to disclose a management expense ratio (MER) for the entity as a whole.  The AASB concluded that a better focus of Australian Accounting Standards is to facilitate the provision of information from which users can calculate their own ratios for their particular needs.  The AASB also noted MERs of superannuation entities are publicly available from other sources; and other investment-type entities are not required to disclose MERs under Australian Accounting Standards.

Nature, extent and management of risks
BC192        Having considered the types of risks to which a superannuation entity could be exposed, the AASB decided ED 179 should propose that:
(a)                   the disclosure requirements in paragraphs 6 to 30 of