Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p71
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 71/76)
Character Range: 234538–237571

basis of the AASB 1056 requirements.
BC241        The AASB considered the time that superannuation entities would need to adjust their financial reporting systems in order to transition from applying the requirements of AAS 25 to applying the requirements of AASB 1056.  In particular, the AASB noted the changes that might need to be made by superannuation entities with defined benefit members liabilities and entities that are so-called 'paragraph 66 plans' (also see paragraph BC34).
BC242        In light of the expected financial reporting impacts on superannuation entities of replacing AAS 25 with AASB 1056 and the need to present comparative information in accordance with AASB 1056, the AASB considered that there should be a period of at least two years between the making of AASB 1056 and its mandatory application date.  In particular, the AASB noted that, for superannuation entities that undertake a comprehensive valuation of some or all of their defined benefit member liabilities on a triennial basis, it might be most practicable for there to be at least three year-ends (including the comparative year-end) between the making of AASB 1056 and the year-end relating to the mandatory application date.
BC243        The AASB also noted that paragraph 10(f) of AASB 101 would generally require a statement of financial position to be presented for the beginning of the earliest comparative period, which based on the thinking in paragraph BC242 would mean a mandatory application date of 1 July 2017.  The AASB considers this to be an excessively long time to elapse before the mandatory application date and concluded that:
(a)                   the mandatory application date should be annual reporting periods beginning on or after 1 July 2016; and
(b)                   superannuation entities should be specifically exempted from presenting a statement of financial position as at the beginning of the earliest comparative period for which information is included in its financial statements when they transition to AASB 1056.

Implications of the review of the governance, structure and operation of Australia's superannuation system
BC244        On 30 June 2010, the report on the Review of the Governance, Efficiency, Structure and Operation of Australia's Superannuation System (the Review) was presented to the Federal Minister for Financial Services, Superannuation and Corporate Law.  As a part of its terms of reference, the Review considered issues in relation to the fees, costs and investment returns of superannuation entities, and improving transparency around these items through reporting to advisers, researchers, analysts, regulators and members.
BC245        The Review Panel concluded that the Australian superannuation system currently lacks transparency, comparability and accountability in relation to costs, fees and investment returns.  It also concluded that, while the proposals in ED 179 would improve financial reporting by superannuation plans, they would not materially improve the