Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p19
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 19/76)
Character Range: 84718–87997

(769,353)
   Tax paid on contributions                              (89,224)
   Net cash inflows from financing activities             (272,530)

   Net increase in cash                                   191,759
   Cash at the beginning of the financial period          276,044
   Cash at the end of the financial period                467,803

Basis for Conclusions
This Basis for Conclusions accompanies, but is not part of, AASB 1056.  The Basis for Conclusions was originally published with AASB 1056 as issued in June 2014.

Introduction
BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's (AASB's) reasons for reaching the conclusions in AASB 1056 Superannuation Entities, which is the replacement Standard for AAS 25 Financial Reporting by Superannuation Plans.  This includes the development of the proposals made in two Exposure Drafts (ED 179 Superannuation Plans and Approved Deposit Funds and ED 223 Superannuation Entities) and the AASB's re-deliberations of those proposals.  Individual Board members gave greater weight to some factors than to others.
BC2               In the process of developing AASB 1056, the AASB also identified a number of topics that are beyond the scope of AASB 1056 or are linked to issues that would have an impact on a wide range of entities.  These topics include issues around the measurement of liabilities using discounted cash flow techniques and the nature of the reporting entity in a superannuation context, which are likely to form the basis of future research by the AASB Research Centre.  The outcomes of this research might impact on issues the AASB raises with the International Accounting Standards Board (IASB) or impact on the application of Australian Accounting Standards.

Background

Comprehensive review of general purpose financial reporting requirements for superannuation entities
BC3               When originally drafted, AAS 25 was intended to provide the main recognition, measurement and disclosure requirements applicable to superannuation plans.  Accordingly, the Standard was intended to apply in the place of other Australian Accounting Standards on financial reporting issues that were considered most significant to superannuation plans.  AAS 25 was also intended to address the financial reporting issues that superannuation plans were specifically dealing with at the time (the early 1990s).
BC4               However, in recent years, developments in the superannuation industry and the adoption of International Financial Reporting Standards (IFRS) mean there has been the need for a comprehensive review of the general purpose financial reporting requirements applicable to superannuation entities, particularly the requirements in AAS 25.  For example, the increasing significance of superannuation entities that have both defined contribution members and defined benefit members (hybrid superannuation entities) highlights deficiencies in AAS 25, which had requirements that lead defined contribution and defined benefit superannuation plans to prepare their financial statements on different bases.
BC5               There were also deficiencies in AAS 25 when compared to the requirements in Australian Accounting Standards applied by other