The AASB Post-implementation Review (PIR) seeks feedback on the overall effectiveness and efficiency of AASB 1056 Superannuation Entities in meeting its original objectives, including whether AASB 1056 remains appropriate and whether Interpretation 1019 The Superannuation Contributions Surcharge is still relevant.

CA ANZ and CPA Australia have lodged a joint submission stating that, overall, we do not support additional reporting requirements, including sub-fund reporting. We have heard that the current level of financial reporting by superannuation entities continues to provide useful information to fund members.

Feedback we have received indicates that some superannuation entities are concerned about the requirement to consolidate controlled entities in accordance with AASB 10 Consolidated Financial Statements. While AASB 10 provides an exception from consolidating controlled investment entities, this exception does not apply to controlled entities whose purpose and activities are to provide services to the investment entity for its investment activities. We have been advised that consolidated financial information does not provide useful or relevant information to fund members. However, we understand that subsidiaries that provide services to the controlling superannuation entity are unlikely to be material therefore consolidation may be optional.

We have also been advised that the superannuation sector could benefit from additional sector-specific Application Guidance relating to fair value measurement of unlisted investments. We recommend the AASB consults with regulators and practitioners to address this concern.

We also recommend that Interpretation 1019 be modified to include a broader set of circumstances and specific taxes which apply to superannuation entities.