Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p48
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 48/76)
Character Range: 168424–171484

'intrinsic value' of the asset.  The AASB concluded that any other measurement principle for an employer-sponsor receivable in respect of defined benefit member liabilities would be likely to involve taking into account employer-sponsor credit risk, which would not be appropriate for the reasons identified in paragraph BC194(d) in relation to risk disclosure proposals.
BC142        A number of constituents commenting on the Draft AASB 105X for fatal-flaw review sought to know why there would be no requirements in relation to whether entities should accrue for contributions receivable from employers for payroll of the reporting period.  The AASB noted that this type of accrual is the subject of other Australian Accounting Standards and the general conventions underpinning accounting, and should not be specifically addressed in AASB 1056.

Tax liabilities and tax assets
BC143        Under AAS 25, the recognition and measurement requirements of AASB 112 apply in determining income tax expense.
BC144        The AASB considered the merits of requiring superannuation entities to measure tax liabilities and tax assets at fair value, which would imply a need for discounting in some circumstances, thereby requiring such entities to depart from AASB 112.  The AASB noted:
(a)                   AASB 112 prohibits discounting deferred tax assets and liabilities to their present values on the basis that the detailed scheduling necessary to undertake that discounting is usually impracticable or highly complex;
(b)                   a significant proportion of many superannuation entity tax balances are attributable to unrealised gains and losses on assets held to fund member benefits and measuring those assets at fair value helps ensure that any associated tax balances determined under AASB 112 would be recognised at amounts approximating fair value;[14] and
(c)                   most of the 'transaction costs' associated with tax balances relate to measuring the assets held to fund member benefits and maintaining adequate records for tax purposes, and the transaction costs directly attributable to extinguishing or settling a tax liability or tax asset are immaterial.
BC145        ED 179 and ED 223 proposed that superannuation entities should measure tax balances in accordance with AASB 112 because:
(a)                   users' needs do not appear to justify a departure from AASB 112 as the difference between a tax balance measured at fair value or in accordance with AASB 112 would, in most cases, be immaterial; and
(b)                   the benefits to users from fair valuing deferred tax assets and liabilities are unlikely to be outweighed by the costs incurred in determining their fair values.
BC146        The majority of the respondents to ED 179 and ED 223 that specifically commented on the recognition and measurement proposals for tax liabilities and tax assets generally agreed with the proposals.  Accordingly, the AASB concluded that superannuation entities should be required to measure tax balances in accordance