Looks at sponsors employee superannuation
ASIC and the Corporate Superannuation Association Inc are to survey CSA corporate sponsors in relation to the status of their employee superannuation funds and any financial reporting implications for the corporate sponsors.
ASIC says it is wanting to establish whether there is inconsistency between corporate sponsors for the reporting of assets or liabilities, and revenues or expenses, for the surpluses or deficits in the defined benefit superannuation plans of their employees.
The survey results will assist ASIC determine whether regulatory action is required in terms of financial reporting by corporate sponsors, or their disclosure to employee members.
ASIC is of the view that under Australian accounting standards, if a plan is in deficit because accrued benefits exceed plan assets, the corporate sponsor should be reporting the liability.
If the company is of the view that no liability to the plan exists, either as a legal or constructive obligation, the plan trustees and employees are entitled to know that the company is not underwriting the obligations of the fund, ASIC asserts.
The CSA says its own current research suggests corporate super trustees, and corporate sponsors are closely monitoring the financial status of plans which are in either surplus or deficit.
In order to protect member interests, trustees and corporate sponsors are already taking appropriate action, such as increasing employer contributions, the CSA says.
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