Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p25
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 25/76)
Character Range: 102287–105418

endowment, whole of life or other long-term insurance policies which match and fully guarantee the benefits to be paid to individual members to apply only a sub-set of its recognition, measurement and disclosure requirements, provided they report items such as: whether those policies have been fully maintained as directed by the insurer(s), the identity of the insurer(s), and amounts contributed by employers and members during the reporting period, and the expenses of the plan incurred by the trustees during the reporting period.
BC35            The AASB concluded superannuation entities are currently divided between Tier 1 entities (including industry plans, public sector plans, retail plans, eligible rollover funds, corporate plans and approved deposit funds) and non-reporting entities (including SAFs and SMSFs).  Accordingly, in the context of AASB 1056, there are entities that prepare GPFSs by applying all the relevant Australian Accounting Standards and those that need not prepare GPFSs.  Consistent with AASB 1053, there is no applicable second Tier of general purpose financial reporting requirements for superannuation entities.

Definitions

Superannuation entity
BC36            AAS 25 defines a superannuation plan as "an arrangement whereby it is agreed, between trustees, employers or self-employed persons, that benefits be provided upon retirement of plan members or upon their resignation, death, disablement or other specific event(s)."  It also includes commentary that notes a superannuation plan may be constituted as either a separate entity or a number of separate entities established to administer aspects of the plan, such as when one entity manages contributions and another administers benefit payments.  AAS 25 applies regardless of whether a separate pool of assets from which benefits are paid is created.
BC37            In recognition of the significant legislative and other changes that have occurred in a superannuation context, ED 179 and ED 223 proposed:
(a)                   a definition of 'superannuation entity'; and
(b)                   definitions for the terms 'superannuation plan' and 'approved deposit fund' (to form the basis for the 'superannuation entity' definition) that are consistent with the equivalent definitions in the Superannuation Industry (Supervision) Act 1993 and accompanying Regulations.
BC38            The AASB noted that, given the extent of regulation about the forms superannuation arrangements can take, particularly in the private sector, the proposed definitions received general support from those responding to ED 179 and ED 223.  However, the AASB also noted that some of the superannuation arrangements in the public sector are not as straight-forward.
BC39            The AASB concluded that the proposed definitions are appropriate for AASB 1056.  However, the AASB also noted that entities, particularly in the public sector, would need to consider the nature of their activities and the boundaries of the entity to determine if they are superannuation entities or only custodial arrangements.  For example, there may be cases in the