Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p58
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 58/76)
Character Range: 197372–200620

apparent inconsistency between the proposals about separate financial statements and the prudential reporting requirements in respect of separate financial statements that apply to APRA-regulated superannuation entities.  The AASB acknowledged the concerns but concluded its proposals would not prevent an APRA-regulated superannuation entity from preparing separate financial statements for the specific purpose of fulfilling its prudential reporting obligations.

AASB conclusions on consolidated and separate financial statements
BC182        Given the amendments made through AASB 2013-5, the AASB concluded that there should not be special requirements on consolidated or separate financial statements for superannuation entities.  Accordingly, they would be required to account for their subsidiaries under AASB 10.  If a superannuation entity qualifies as an 'investment entity' it would be required to account at fair value through profit or loss for its subsidiaries, except for any subsidiary that provides services relating to its investment activities, which would still need to be consolidated.
BC183        The AASB acknowledged this may mean that parent superannuation entities would generally account for their subsidiaries at fair value through profit or loss and not prepare consolidated financial statements.  However, the AASB also concluded that superannuation entities that qualify as investment entities might have subsidiaries that provide services that relate to its investment activities[20] and/or it is conceivable that, now or in the future, there may be a superannuation entity that has subsidiaries and does not qualify to be treated as an 'investment entity'.  In both these cases, when material, superannuation entities would still need to prepare consolidated financial statements under AASB 10.

Disclosures
BC184        As outlined in the Framework, financial statement disclosures provide information about the risks and uncertainties affecting an entity.  In many circumstances, the disclosure requirements of Australian Accounting Standards would provide users of the financial statements of a superannuation entity with useful information for their decision making.  However, some disclosure principles and requirements of those Standards may not facilitate the provision of useful information in a superannuation context.  For example, AASB 116 Property, Plant and Equipment requires entities applying the revaluation model to disclose the carrying amount of each revalued class of property, plant and equipment as it would have been measured under the cost model.  However, there are very few circumstances in which users of superannuation entity financial statements might require historical cost information.
BC185        The AASB decided that ED 179 and ED 223 should propose the use of the disclosure requirements in many of the existing Australian Accounting Standards, but should also propose some 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