A Description of the Regulatory Framework Relevant to Superannuation Plans

question 59

Multiple Choice

A description of the regulatory framework relevant to superannuation plans in Australia is:

• A) AAS 25 provides legally backed, mandatory requirements for financial reporting by superannuation funds. The reporting required covers both general-purpose financial reporting and statements of contributions and entitlements for individual members. APRA and ASIC have a role in supervising and monitoring superannuation plans in line with legislation contained in the Superannuation Industry Supervision Act 1993.
• B) ASIC has a supervisory role and APRA monitors trusts that are superannuation plans. Regulations regarding the plans are set out in the Superannuation Industry Supervision Act 1993. AAS 25 provides guidance for reporting for general-purpose users and individual members and it is recommended by APRA that plans conform with AAS 25.
• C) APRA is the regulatory body that supervises reporting and financial standards for superannuation trusts. ASIC monitors those superannuation plans established as companies. In general, superannuation plans are regulated through the Superannuation Industry Supervision Act 1993. This Act mandates compliance with AAS 25 for all superannuation plans.
• D) Superannuation plans are monitored and regulated by APRA and ASIC, with specific regulations set out in the Superannuation Industry Supervision Act 1993. AAS 25 provides guidance for general-purpose financial reports and it is recommended by APRA that plans follow AAS 25.
• E) None of the given answers.

---

Definitions:

Accrued Expense

Expenses that have been incurred but not yet paid, representing liabilities for goods or services received but not yet invoiced.

Recognising

The process of recording an item in the financial statements when it meets the criteria set by accounting standards.