Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p72
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 72/76)
Character Range: 237273–240543

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 information required by individual users, particularly individual members.
BC246        The Review Panel considered the superannuation industry and members are more concerned about the performance of the investment options in which they are invested than the whole-of-fund information required by AAS 25.  It also noted a perceived disconnect between the information provided by superannuation entities in GPFSs and the information needs of users, particularly members, which would be unlikely to be rectified under the proposals in ED 179.  However, there was an acknowledgement by the Review Panel that a plan member can be affected by factors impacting on their plan as a whole.[22]
BC247        The AASB considered the Panel's findings and noted, even though the GPFSs of superannuation entities are not targeted at each member's particular interest, the whole-of-fund financial information is useful to members and other users for their decision making.
BC248        In addition, the AASB concluded financial statements play an important role within the current regulatory arrangements by providing a basis for information reported in trustees' annual reports to members and members' individual benefit statements, even though these would not include the same level of disclosure or necessarily have been audited.  Consequently, under the current arrangements financial statements are a key medium through which trustees discharge their accountability responsibilities.
BC249        The Stronger Super reforms implemented from 1 July 2013 are the government response to the Review recommendations and the AASB has monitored those reforms and, where relevant, considered them in developing AASB 1056.

Certain other matters raised by respondents to ED 179 and ED 223 that the AASB decided not to pursue
BC250        Some respondents to ED 179 and ED 223 sought specific guidance in relation to superannuation entities on the following:
(a)                   the preparation and presentation of consolidated financial statements under AASB 3 and AASB 10;
(b)                   presentation of statements of cash flows and disclosures in relation to non-cash transactions under AASB 107 Statement of Cash Flows.  In doing so, the AASB noted AASB 107 requires entities to:
(i)                     disclose a reconciliation of cash flows arising from operating activities to profit or loss;
(ii)                   report cash flows from operating, investing and financing activities on a gross basis; and
(iii)                 disclose non-cash investing and financing transactions in a way that provides relevant information about such transactions;
(c)                   risk-based disclosures in relation to asset concentrations and sensitivity analyses;
(d)                   disclosures in relation to business, non-financial and emerging risks;
(e)                   disclosures in relation to information about reserves;
(f)                    how a superannuation