Plans of Superannuation Organization Free-Samples for Students

Questions 1.Because members of Superannuation Plans are likely to be Significantly different from Company Shareholders, Normal Commercial Accounting reports may be unsuitable for Superannuation pPans. Do you agree with this Statement? Explain your reasons why or why not.2.Discuss how the Introduction of AASB 1056 is likely to affect member understanding of the Reports. Answers: 1.For superannuation plans two types of reports are prepared namely the individual financial statement that is used by the financial statements to be used by the members and the secondly the general purpose financial statement. This type of report is not administered by any kind of standard since it helps the members in decision-making. It helps users in making choices in setting aside the money in their superannuation fund. The statement is cautiously scrutinised prior to releasing to the public (Cummins, 2015). Members of the superannuation plan are different from the company shareholders and the individual financial statement is important for the members to have a detailed view on their current assets and contribution since every member have different superannuation plan. The general-purpose financial statement provides the users with the information as to where these funds actually used by the trustees. It raises questions concerning the as how the trustees use the superannuation fund to sustainably pay their beneficiaries. As stated under AASB 25 and AASB 102 that the report provides members with an overview of the plans (Galloway, 2014). It assist in the procedure of decision making for members in tailoring their choice that suits their needs. Apart from this, members will also have special interest regarding the performance of the trustees towards efficient management and their ability to generate and distribute according to the degree of benefit. 2.A superannuation organisation must disclose the information, which provides the users with basis for understanding the liabilities of members. According to AG30 paragraph 23 mandates a superannuation organisation to disclose those information that provides the users with the basis for understanding the liability of the members. Paragraph 24 (a) mandatorily requires a superannuation organisation to treat its defined contribution members liabilities in accordance with the scope of AASB 7 with the objective of disclosing the information regarding the credit risk, market risk and liquidity risk (Stannard, 2017). The fair value of disclosure requirements of AASB 7 is not required to be applied in relation to the members liabilities. While making the application of relevant principle and requirements of AASB 7 regarding the credit, market and liquidity risk an organisation is required to provide considerations to the characteristics of members by determining the information that it would provide (Fund, 2014). The entity may consider disclosing information through a mechanism by which market risk is passed on the members by frequently crediting the members account. Reference Cummins, C. (2015). The gold standard.Superfunds Magazine, (408), 42. Fund, R. T. S. S. (2014). Financial statements For the year ended 30 June 2010. Galloway, D. (2014). How regulation costs members.Investment Magazine, (107), 30. Stannard, J. (2017). Fund reporting and disclosure: Obligations are ever-