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Super funds face accounting changes
Superannuation funds may be required to change the way they report their financial results under changes contained within an exposure draft developed by the Australian Accounting Standards Board (AASB).
The exposure draft, Superannuation Funds and Approved Deposit Funds (ADFs), was developed by the AASB with the objective of providing improved comparability of financial statements and more detailed disclosures regarding member benefits.
According to the AASB, it proposes to address a number of perceived gaps in the current superannuation reporting requirements, including recommending a more rigorous approach to measuring defined benefit obligations — something capable of providing a more accurate picture of the solvency of defined benefit plans.
Commenting on the exposure draft, AASB acting chairman Bruce Porter said under the arrangements, different types of superannuation plans were required to prepare different financial statements.
“In particular, defined contribution plans are required to prepare cash flow statements, whereas defined benefit plans are not,” he said. “The exposure draft proposes that this distinction be removed so that all plans present cash flow information to better meet user needs.”
Porter said in addition, it was proposed that all superannuation plans and approved deposit funds prepare a statement of changes in member benefits, the purpose of which was to facilitate a clear presentation of the sources of change in member benefits.
He said the exposure draft also proposed changes to the way superannuation plans and ADFs accounted for their interests in the assets of entities they control.
AUTHOR
Mike Taylor
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