Disclosure (AASB1056_06-14_COMPmay19_01-20)

Paragraph AG5 of Appendix B includes guidance on the approach to disclosure principles and requirements in other Australian Accounting Standards that a superannuation entity applies when relevant.

A superannuation entity shall disclose information that provides users with a basis for understanding the benefits the entity provides to members. These disclosures shall include the types of benefits the superannuation entity provides and, when applicable, whether the superannuation entity can accept new defined benefit members.

A superannuation entity shall disclose information that provides users with a basis for understanding the nature and amounts of income and expenses.

A superannuation entity shall disclose information that provides users with a basis for understanding member liabilities.

In relation to defined contribution member liabilities, to meet the objective in paragraph 23, when applicable, an entity:

(a) applies the disclosure requirements of AASB 7 Financial Instruments: Disclosures in respect of credit risk, market risk and liquidity risk, as if defined contribution member liabilities were financial liabilities; and

(b) discloses the amount of any net assets attributable to defined contribution members but not allocated to those members as at the end of the period.

In relation to defined benefit member liabilities, to meet the objective in paragraph 23, the disclosures would include:

(a) information in relation to the key assumptions used in measuring defined benefit member liabilities, including:

(i) the basis for the key assumptions, including the manner in which they have been determined;

(ii) the key assumptions used, as percentages or in other quantitative terms or in qualitative form; and

(iii) the sensitivity of the liabilities to reasonably possible changes in the key assumptions;

(b) the amount of vested benefits at the end of the period;

(c) whether the actual level of contributions is consistent with the actuary’s recommendations;

(d) information about the manner in which the entity manages liquidity risk; and

(e) where the entity’s actual investment portfolio differs from the portfolio used in measuring defined benefit member liabilities in accordance with paragraph 17, an explanation of why that is the case.

When an employer-sponsor receivable is recognised in accordance with paragraph 18, the main features of the specific contractual or statutory arrangement in place between the superannuation entity and the relevant employer-sponsor(s) shall be disclosed.

To meet the objective in paragraph 26, the disclosures would include:

(a) whether the arrangement is contractual or statutory and, in the latter case, the name of the statute;

(b) the identity of the employer-sponsor(s); and

(c) the manner in which the receivable is expected to be realised by the entity.

Where the amount of net assets attributable to defined benefit members differs from defined benefit member liabilities determined in accordance with this Standard, the entity shall disclose information that provides users with a basis for understanding the nature, causes of and any strategies for addressing the difference between the two amounts.

To meet the objective in paragraph 28, the disclosures would include:

(a) whether the difference has arisen, in whole or in part, as a consequence of applying different assumptions for the purposes of determining funding levels and measuring defined benefit member liabilities and, if so, the nature of the differences between the assumptions; and

(b) in the case of a difference not wholly explained by (a):

(i) the entity’s strategy for addressing the difference and the anticipated timeframe over which the difference is expected to be eliminated; and

(ii) any plans or processes in place for employer-sponsors to seek to be paid some or all of a surplus or to reduce the level of their contributions in the future.

A superannuation entity shall disclose information that provides users with a basis for understanding the overall change in defined benefit member liabilities.

To meet the objective in paragraph 30, the disclosures would include quantitative or qualitative information about changes to key assumptions.

A superannuation entity shall disclose disaggregated information when it is necessary to explain the risks and benefit arrangements relating to different categories of members.