Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p62
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 62/76)
Character Range: 209035–212217

member liabilities, the AASB considers most of the disclosure principles in AASB 7 are not readily applicable, and concluded AASB 1056 should set out disclosure principles and related guidance on explaining the quantitative and/or qualitative information that would be useful, including:
(a)                   how any funding deficit is expected to be met – in terms of the nature, causes of, and any strategies for, addressing the deficit;
(b)                   the basis for assumptions and manner in which they are determined; and
(c)                   the sensitivity of the liabilities to changes in key assumptions.
BC199        The AASB concluded that, consistent with the principles in AASB 7, the subject of the sensitivity disclosures should be reasonably possible changes in the key assumptions, and when there is more than one key assumption for which a change is judged to be reasonably possible, the analysis can be performed on a univariate basis or on a multivariate basis.
BC200        Given the obligations of trustees to have an investment strategy that has regard to the entity's overall circumstances, including the liquidity of its investments and its expected cash flow requirements, the AASB also concluded that, where the entity's actual investment portfolio differs from the portfolio used in measuring defined benefit member liabilities, an explanation should be required of why that is the case.

Disaggregated financial information
BC201        Information about the way a superannuation entity arranges and manages assets attributable to different groups of members, and the related member liabilities, can help provide users with a basis for understanding the financial performance, financial position and risk exposures of the entity as a whole.
BC202        In framing its ED 179 proposals, the AASB decided the 'through the eyes of management' approach applied to operating segments under AASB 8 Operating Segments would be an appropriate approach for superannuation entities to apply in respect of disclosing information about assets attributable to different groups of members and the related member liabilities because:
(a)                   whilst they generally do not have identifiable operating segments, some superannuation entities segregate their assets into different member groups to facilitate meeting liabilities to those different groups.  Users would arguably benefit from these entities disclosing information about such asset groups and the related member liabilities that corresponds to information provided in management reports;
(b)                   the approach is sufficiently generic to be applied in disclosing information about assets attributable to different member groups;
(c)                   the approach should be generally less costly to apply than alternative approaches because it uses information already generated for management's use; and
(d)                   the approach is consistent with that proposed for other disclosures, such as disclosures about risks and risk management arrangements.
BC203        Some respondents to ED 179 agreed with the principle of having segment disclosures, particularly if