14. Reserves

Report the balance of all reserves as at the end of the reporting period. This relates to unallocated reserves of the superannuation entity (i.e. income that has not been specifically allocated against member accounts). Reserves can be used for such things as smoothing investment earnings, topping up member benefits, offsetting fees.

Defined contribution

Amounts in defined contribution/accumulation superannuation entities that are unallocated to members but do not form part of a formal reserve should also be reported at this item. This includes, for example, unallocated balances which are held overnight in a bank account while the member paperwork is being processed.

Defined benefit

• Amounts in defined benefit superannuation entities that are unallocated to members but do not form part of a formal reserve will be included at SRF 110.0 Statement of Financial Position item 15.0 ‘Excess/deficiency of assets’.
• For defined benefit entities, where a formal actuarial valuation has not been conducted as at the year end reporting date, a $Nil balance should be entered at this item.

Note that if all investment earnings and entity expenses are put through reserves and the members receive earnings and pay fees and contributions tax, these should not be netted together to reflect net movement to or from reserves. Instead they should be reported in line with the entity’s accounting practices with details of movements in reserves during the reporting period.