Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p21
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 21/76)
Character Range: 90482–93889

corresponding requirements of other Standards, there remains a need for a specific Standard to help ensure the general purpose financial statements (GPFSs) of superannuation entities cater for the needs of users.

Users of the general purpose financial statements of superannuation entities
BC12            The AASB concluded that the following are most prominent among the users of GPFSs of superannuation entities:
(a)                   current and potential members and beneficiaries;
(b)                   parties that act on behalf of members and beneficiaries, such as financial analysts, advisors and unions; and
(c)                   employer-sponsors.
BC13            This is because the primary responsibility of superannuation entities is to provide retirement benefits to their members, and both employees and employers contribute to those entities.
BC14            Financial analysts and advisors are generally servicing a wide variety of existing and potential superannuation entity members and may use superannuation entity financial statements in the course of their work.
BC15            The Superannuation Guarantee (Administration) Act 1992 provides most superannuation members the right to choose the superannuation entity managing their entitlements, thereby reducing the incentives for employers to provide corporate superannuation arrangements.  An employer without a plan of its own is required to identify an appropriate default plan for employees.  Consequently, employers seeking a superannuation entity to meet their employees' superannuation needs might use the financial statements of an entity to gain assurances regarding its financial position and performance.
BC16            Employers that provide defined benefit entitlements, particularly through master trusts and other similar arrangements, are interested in a superannuation entity's financial statements in order to evaluate whether the arrangement is cost-beneficial and the capacity of the assets to fund entitlements as and when they fall due.
BC17            The AASB concluded that, for some items, the reporting requirements that would otherwise apply under Australian Accounting Standards would not necessarily give rise to relevant financial information for users of superannuation entity financial statements.  This is particularly the case in relation to measuring assets, recognising member liabilities, measuring defined benefit member liabilities and disclosing information about the amount of, and the entity's capacity to meet, member liabilities.  As a consequence, the AASB concluded there is a need to:
(a)                   require superannuation entities to depart from Australian Accounting Standards on some topics;
(b)                   limit the accounting treatments available to superannuation entities in other Australian Accounting Standards; and
(c)                   require superannuation entities to provide information about items and events specific to them.

A replacement Standard for AAS 25
BC18            In May 2009, the AASB published ED 179 containing proposals for a replacement Standard for AAS 25.  The AASB received 20 comment letters on ED 179 from a range of constituents, including superannuation plans, superannuation industry representative bodies, accounting firms, professional accounting and actuarial bodies and service providers to the superannuation industry.