Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p64
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 64/76)
Character Range: 214974–218016

be clear from the way the entity's assets are managed;
(b)                   decided that disaggregated financial disclosures would provide useful information for users, particularly for hybrid entities because they are exposed to different types and levels of risks; and
(c)                   decided that there is a need to mitigate the practical issues identified by constituents.
BC208        The AASB noted that requiring superannuation entities to provide disaggregated disclosures on the basis of member groups would facilitate a hybrid superannuation entity providing risk-based disclosures in respect of its liabilities to the different classes of members and it would potentially address some concerns of constituents around investment options and sub-plans being the subject of disaggregated disclosure.  However, disaggregated disclosures may, for example, not be useful for showing how a hybrid plan with a small number of defined benefit members arranges and manages activities.
BC209        The AASB also noted that requiring the use of the principles and requirements in AASB 8, as appropriate, might have drawbacks, including:
(a)                   some of the terms used in AASB 8 may be ambiguous or irrelevant in a superannuation context.  For example, a characteristic of an operating segment is that its operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resource allocations.  However, some could interpret this to mean that investment options are not operating segments because members generally decide how the assets of the plan are allocated; and
(b)                   some entities may provide only limited segment information under the principles and requirements in AASB 8, even when they have both defined contribution and defined benefit members because the operating results regularly reviewed by the trustees do not distinguish between the two groups of members or their related assets.
BC210        Based on these considerations, the AASB decided ED 223 should propose that a superannuation entity provide disaggregated disclosures in accordance with the principles and requirements in AASB 8, except where it is appropriate to modify the requirements for application in a superannuation context.  This was intended to provide trustees with more flexibility and enable them to provide disaggregated information that reflects the manner in which they arrange and manage the assets and liabilities of their entity.
BC211        In coming to these proposals, the AASB noted paragraph 19 of AASB 8 comments that there may be a practical limit to the number of reportable segments an entity separately discloses beyond which segment information may become too detailed.
BC212        Respondents to ED 223 raised many of the same concerns with the proposals as were expressed in relation to the ED 179 proposals.
BC213        In redeliberating its approach, the AASB noted that the role of a trustee in a superannuation entity differs from the role of a