Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p67
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 67/76)
Character Range: 223387–226484

losses for a period to be useful information as it provides an indication of how accurately the superannuation plan has estimated the key determinants of defined benefit members' accrued benefits.  However, the AASB also noted information about the components of remeasurement changes in defined benefit member liabilities might be regarded as relatively more useful in an employer-sponsor context.  Accordingly, the AASB decided ED 179 should ask constituents whether the separate disclosure of the components of remeasurement changes would provide useful information for users in a superannuation context and, if so, how it should be presented.
BC223        The majority of respondents to ED 179 expressed a view that the disclosures should be required.  Other respondents:
(a)                   did not agree with the proposal that defined benefit member liabilities be measured at the amount of such members' accrued benefits; and/or
(b)                   did not consider such disclosures would be justified on cost-benefit grounds because the number of defined benefit members is declining.
BC224        The AASB included similar proposals in ED 223.  A number of respondents to ED 223 noted that, in the general course of measuring defined benefit member liabilities, an actuarial report would not usually provide quantitative information on components of the change from one period to the next and nor would any of the potential shortcut methods of achieving materially the same measure as would be provided by a full actuarial assessment.  They also noted that such information might only be relevant in an employer context where the employer is recognising the net difference between the liabilities and the assets supporting the liabilities.
BC225        Based on the responses received on ED 223, and in view of the likely costs involved in determining quantitative information on components of the change from one period to the next, the AASB concluded disclosure of explanations in either quantitative or qualitative terms about changes in defined benefit member liabilities should be required.

Related parties
BC226        The AASB noted that, while the disclosure principles and requirements of AASB 124 Related Party Disclosures would apply to most of the related party relationships and transactions that a superannuation entity would be involved in, they may not facilitate consistent disclosures across all superannuation entities.
BC227        At the time the AASB deliberated on the proposals in ED 179, the definition of related party in AASB 124 focused predominantly upon relationships premised on control, joint control or significant influence.  Nevertheless, the AASB concluded that trustees and employer-sponsors are, in essence, related parties of superannuation entities because they can affect those entities' financing and operating policies.  ED 179 proposed disclosure about the entity's relationships with its trustee(s) and employer-sponsor(s), any transactions with trustees or employer-sponsors during the reporting period, and any outstanding balances with