Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p36
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 36/76)
Character Range: 133857–136975

liabilities for the period, after adjusting for movements of member benefits into and out of the defined benefit plan, including net after tax contributions, benefits, transfers between reserves and accrued benefits, and any gains and losses on non-routine settlements, curtailments and plan amendments.  Accordingly, the AASB concluded a superannuation entity should recognise and present the net change in defined benefit member liabilities for a reporting period as a gain or loss in the income statement.

Statement of changes in member benefits
BC91            The AASB noted that paragraph 80 of AASB 101 requires an entity without share capital to disclose information in relation to owners' interests equivalent to that required by paragraph 79(a) of AASB 101.  However, the AASB concluded the presentation of member benefits in accordance with paragraph 79(a) of AASB 101 may not facilitate useful information to users in a superannuation context.  For example, much of the information described in paragraph 79(a) of AASB 101 does not readily relate to a superannuation context.
BC92            Although some respondents to ED 179 and ED 223 raised concerns about the number of financial statements superannuation entities might have to prepare, given the significance of member benefits, the AASB concluded the financial statements of a superannuation entity should clearly present information that provides users with a basis for understanding changes in member liabilities.  Accordingly, the AASB concluded that a statement of changes in member benefits is necessary to ensure that contributions, rollovers, transfers and benefits to members are clearly presented in a manner that enables users to evaluate their significance in relation to the entity's financial position.

Presentation of taxation amounts
BC93            Tax is levied on superannuation entities in respect of concessional contributions received and taxable earnings.[7]
BC94            Under AAS 25, tax attributable to concessional contributions is recognised as a part of income tax expense in the period contributions are received, consistent with the treatment of contributions under AAS 25.  However, consistent with contributions not being treated as revenues, ED 179 and ED 223 proposed that tax levied on concessional contributions be presented separately in the statement of changes in member benefits.
BC95            Some respondents to ED 179 and ED 223 considered that it would be more useful to present all tax amounts in one statement and, preferably, the income statement.  However, other respondents acknowledged the distinction between the tax on investment income and tax on concessional contributions and the relevance of presenting them in different statements.
BC96            The AASB concluded that tax levied on concessional contributions should be presented separately in the statement of changes in member benefits because:
(a)                   information about tax on contributions is important for decision making by users;
(b)                   tax on concessional contributions is effectively paid by a