Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p23
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 23/76)
Character Range: 96558–99808

a reporting entity or is not a reporting entity and prepares financial statements which purport to be GPFSs.
BC24            The AASB considered the advantages and disadvantages of the replacement Standard for AAS 25 applying to different types of superannuation entities, including superannuation plans, approved deposit funds, eligible rollover funds, pooled superannuation trusts, Small Australian Prudential Regulation Authority (APRA) Funds (SAFs) and self-managed superannuation funds (SMSFs).
BC25            The AASB proposed in ED 179 and ED 223 that the replacement Standard for AAS 25 should retain the reporting entity concept, particularly in view of the AASB's current research on the concept.  Accordingly, the replacement Standard would apply to each reporting entity that is a defined contribution plan, defined benefit plan, 'hybrid' plan (comprising both defined contribution and defined benefit members), private sector plan, public sector plan, eligible rollover fund or approved deposit fund.
BC26            Whilst a number of respondents to ED 179 and ED 223 argued that some SMSFs would often be reporting entities, the AASB concluded that an entity such as a SMSF would not normally be a reporting entity because:
(a)                   each member is required to be a trustee (or a director of a corporate trustee) and to have access to the entity's financial information; and
(b)                   the primary external user is the Australian Taxation Office, which requires specific information for compliance and regulatory purposes.
BC27            During its deliberations, the AASB gave particular consideration to whether the replacement Standard for AAS 25 should apply to pooled superannuation trusts.  The AASB noted pooled superannuation trusts and superannuation plans, particularly defined contribution superannuation plans, share a number of characteristics.  For example, they are both required to comply with many of the same prudential requirements, are taxed at the same concessional tax rate and accept monies from other superannuation entities.
BC28            However, the AASB concluded pooled superannuation trusts are more in the nature of investment trusts, such as managed investment schemes, because they have unitholders rather than members, and there are no member-based restrictions over when they can distribute funds to a unitholder.  Accordingly, to facilitate comparable financial reporting among investment-type trusts, the AASB concluded pooled superannuation trusts should apply Australian Accounting Standards in the same manner as managed investment schemes.
BC29            Respondents to ED 179 and ED 223 expressed general agreement with the proposed scope and the AASB concluded that the replacement Standard for AAS 25 should reflect those application proposals.

Tiers of Australian Accounting Standards
BC30            Subsequent to issuing ED 179, the AASB promulgated AASB 1053 Application of Tiers of Australian Accounting Standards, which establishes a differential reporting framework consisting of two tiers of reporting requirements for preparing GPFSs:
(a)                   Tier 1: Australian Accounting Standards; and
(b)                   Tier 2: Australian Accounting