13. Liability for accrued benefits

Report the value of members’ accrued benefits as at the reporting date. This is to be determined in accordance with the requirements of current Australian Accounting Standards.

Accumulation/defined contribution superannuation entities

The liability for accrued benefits for a defined contribution superannuation entity is the superannuation entity’s present obligation to pay benefits to members and beneficiaries in the future and is calculated as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date.

Defined benefit superannuation entities

Accrued benefits of a defined benefit superannuation entity shall be measured, using actuarial assumptions and valuations where appropriate, as the present value of expected future payments to members arising from membership of the superannuation entity up to the measurement date

A formal actuarial review for defined benefit superannuation entities is completed at least every three years under SIS Regulation 9.29. APRA is not advocating that the superannuation entity must complete these on a more frequent basis than is required under the Superannuation Industry (Supervision) Act 1993.

Accordingly, for quarterly and/or annual financial periods in between the formal actuarial valuations, this amount should be reported as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date i.e. the figure reported in item 12 ‘Net assets available to pay benefits’. In this event, a $Nil figure should be entered at both item 14 ‘Reserves’ and item 15 ‘Excess/deficiency of assets’.