Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p30
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 30/76)
Character Range: 116692–119927

AASB decided amortised cost is not an appropriate basis in a superannuation context because it would not result in useful information to users.  Accordingly, the AASB proposed that a superannuation entity should measure its liabilities at fair value, with the exception of member liabilities, tax liabilities, and liabilities arising from insurance arrangements the entity might provide to its members.  In addition, consistent with its decision in relation to the treatment of transaction costs in respect of assets, the AASB proposed in ED 223 that a superannuation entity should treat transaction costs attributable to each liability measured at fair value as an increase in its carrying amount.
BC61            Consistent with constituent comments on measuring assets, the majority of respondents agreed with the ED 223 measurement proposals for liabilities.  The AASB concluded it should require fair value measurement for liabilities other than member liabilities, tax liabilities and liabilities arising from insurance arrangements.  Consistent with its conclusions on transaction costs in relation to assets, the AASB also concluded it should require that:
(a)                   the carrying amount of liabilities measured at fair value not be adjusted for transaction costs; and
(b)                   costs attributable to issuing a liability be treated in accordance with the relevant Australian Accounting Standards.

Presentation of financial statements
BC62            AAS 25 required a defined contribution plan, and permits a defined benefit plan, to present a statement of financial position, operating statement, and statement of cash flows.  Alternatively, defined benefit plans can present a statement of net assets and a statement of changes in net assets.
BC63            In relation to ED 179 and ED 223, the AASB decided to propose that the existing AAS 25 approach should not be retained because financial statements may not be comparable between superannuation entities and the approach does not cater for (hybrid) entities that have both defined contribution members and defined benefit members.
BC64            The AASB considered the implications of superannuation entities applying AASB 101 Presentation of Financial Statements and decided to propose that they present:
(a)                   a statement of financial position, a statement of cash flows and, where relevant, a statement of changes in equity, in accordance with applicable Australian Accounting Standards;
(b)                   an income statement instead of a single statement of comprehensive income or a separate income statement and a statement of comprehensive income;
(c)                   a statement of changes in member benefits; and
(d)                   notes in accordance with other relevant Australian Accounting Standards except where the disclosure principles and requirements in other Australian Accounting Standards are not consistent with the measurement requirements or the disclosure principles for superannuation entities.

Statement of financial position
BC65            The AASB noted a superannuation entity would recognise a difference between total assets and total liabilities (including members' accrued benefits