Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p22
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 22/76)
Character Range: 93583–96830

replacement Standard for AAS 25.  The AASB received 20 comment letters on ED 179 from a range of constituents, including superannuation plans, superannuation industry representative bodies, accounting firms, professional accounting and actuarial bodies and service providers to the superannuation industry.  The AASB also held roundtable discussions on ED 179 with a range of constituents with an interest in the superannuation industry to enable them to discuss the proposals directly with AASB members.
BC19            Based on the responses to ED 179 and the AASB's redeliberations, in December 2011, the AASB published ED 223 containing revised proposals for a replacement Standard for AAS 25.  The AASB received 17 comment letters on ED 223 from a range of constituents and also held roundtable discussions on ED 223.  The feedback from both ED 179 and ED 223 and other forms of outreach that the AASB has performed between 2012 and 2014 have shaped AASB 1056.
BC20            The majority of respondents to both ED 179 and ED 223 expressed broad support for developing a replacement Standard that:
(a)                   provides greater transparency and consistency in reporting by superannuation entities; and
(b)                   substantially aligns the reporting practices of superannuation entities with other entities applying Australian Accounting Standards, thereby facilitating greater comparability.
BC21            Each of the respondents expressed concerns with one or more of the proposals in ED 179, particularly on cost-benefit grounds, which the AASB considered in developing ED 223.  Further revisions have been made in developing AASB 1056 in response to issues raised by constituents on the revised proposals in ED 223.  The revisions arising from the consultative process include matters relating to:
(a)                   presenting financial statements, including a statement of changes in member benefits;
(b)                   recognising defined benefit member liabilities;
(c)                   measuring both defined contribution member and defined benefit member liabilities;
(d)                   measuring assets;
(e)                   accounting for liabilities and assets that might arise from insurance arrangements provided to members;
(f)                    disclosing information about the nature, extent and management of credit, liquidity and market risks; and
(g)                   disclosing disaggregated information.
BC22            In the process of finalising AASB 1056, the AASB approved a Draft AASB 1056 for fatal-flaw review that was published in December 2013 for a 60-day comment period.  The comments received during that process helped the AASB to refine its requirements before making AASB 1056.

Application of the replacement Standard

The reporting entity concept and superannuation entities
BC23            AAS 25 applies to the financial statements of each private or public sector superannuation plan that is a reporting entity or is not a reporting entity and prepares financial statements which purport to be GPFSs.
BC24            The AASB considered the advantages and disadvantages of the replacement Standard for AAS 25 applying to different types of superannuation entities,