Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p75
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 75/76)
Character Range: 245920–248675

Puttable Financial Instruments and Obligations arising on Liquidation amended AASB 132 in February 2008.
[10] Issued in May 2007.
[11] Issued in June 2005.
[12] Issued in June 2013.
[13] When a benefit formula prescribes that members accrue materially higher levels of benefits as they near retirement age, the allocation of service cost to reporting periods in accordance with the benefit formula would not provide a reliable measure of the employer's periodic cost of providing such benefits to employees, particularly in the earlier years of service.  Accordingly, in such circumstances, AASB 119 requires employers to attribute defined benefits to reporting periods on a straight-line basis to more closely reflect the periodic cost of providing such benefits to employees.  Unlike employers, superannuation entities do not receive services from members in exchange for entitlements and it would be more relevant for a plan to attribute member benefits to reporting periods on a basis appropriate to the plan's particular circumstances, taking into account the formal terms of the plan and any constructive obligations that go beyond the formal terms of the plan.
[14] For example, if a superannuation entity sold an asset for its carrying amount at the end of the period, and that amount is above its tax base, the tax liability measured in accordance with AASB 112 would generally be materially the same as the present value of tax the entity would have to pay in relation to the asset.
[15] AASB 10 superseded AASB 127 for periods beginning on or after 1 January 2013.
[16] Consistent with the approach currently applied under AASB 1023 and AASB 1038.
[17] Similar to the approach in the now superseded AASB 1038 Life Insurance Business (1998).
[18] AASB 10 had not yet been issued.
[19] ED/2011/4 Investment Entities (August 2011) was open for comment by 5 January 2012.  ED/2011/4 was incorporated in AASB ED 220 Investment Entities for comment by 30 November 2011.
[20] Refer to paragraph 32 of AASB 10 as amended by AASB 2013-5.
[21] The Bases for Conclusions to IAS 32, IAS 39 and IFRS 7 suggest that paragraphs 9 to 11 of IFRS 7 are intended to address concerns about how entities exercise their choice to designate financial instruments at fair value through profit or loss.
[22] As noted in the Review Panel's Final Report (page 173) "… during the GFC, previously liquid assets held by some superannuation funds became illiquid due to capital freezes in mortgage, cash management and property trusts.  In order to meet portability, switching and capital drawdown requests, some trustees were forced to sell equities into a depressed market, while trustees who were unable to meet these requests applied to APRA for a variation or suspension