Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p66
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 66/76)
Character Range: 220575–223649

changes in defined benefit liabilities, including benefit cost, interest cost and actuarial gains and losses.
BC218        However, ED 179 and ED 223 did not incorporate some other ED 195 disclosure proposals, including disclosure of defined benefit member liabilities adjusted to exclude the effect of projected growth in salaries ('accumulated benefit obligation'), because it is inconsistent with the presumption employers will meet their defined benefit member liabilities in full.
BC219        The AASB considered whether ED 223 should propose that a superannuation entity disclose information required by AASB 119 (as amended in 2011) and decided those requirements are generally not relevant in a superannuation entity context.  This was mainly because AASB 119 has an employer perspective, which differs from the member perspective of superannuation entities.
BC220        Instead, the AASB concluded that more relevant information would result by requiring disclosures that satisfy principles regarding providing users with an understanding of the nature of member benefits and the risks associated with them.

Net assets attributable to defined benefit members
BC221        At any particular time, the amount of net assets attributable to defined benefit members may differ from the amount of such members' accrued benefits.  However, the existence of a surplus or deficit does not necessarily mean the superannuation entity will or will not be able to pay these benefits when due.  Other factors can influence the capacity to pay defined benefit members, including the expected earnings rate on the net assets attributable to such members and the expected level of future contributions by defined benefit members and/or their employer-sponsors.  Nevertheless, knowledge of the relationship between the net assets attributable to defined benefit members and such members' accrued benefits is important for an understanding of a plan's financial position, including its solvency.  The AASB concluded that information about the size, nature, causes of, and any strategies for addressing a surplus or deficit should be disclosed.

Remeasurement changes in defined benefit members' accrued benefits
BC222        During its deliberations on the proposals in ED 179, the AASB considered whether separate disclosures of the components of remeasurement changes in defined benefit members' accrued benefits, particularly benefit cost, interest cost and actuarial gains and losses, would be useful information.  The AASB noted some users might consider the amount of benefit cost for a period to be useful in providing an indication of the recurring cost to the superannuation entity of providing defined benefit entitlements.  The AASB also noted some users might consider the amount of any actuarial gains and losses for a period to be useful information as it provides an indication of how accurately the superannuation plan has estimated the key determinants of defined benefit members' accrued benefits.  However, the AASB also noted information about the components of