.png)
As I understand FR of SMSF is for special purpose. The Superannuation Fund is not a repotting entity.
but there is Note 1 of Notes of Financial Statement of SMSF was selected as below.
Please give me your ideas that whether it is also ok or what auditor need notes in Management letter. Many Thanks
Note 1: Summary of Significant Accounting Policies
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standard AASB
1056: Superannuation Entities , other applicable Accounting Standards, the provisions of the trust deed and the requirements of the Superannuation Industry (Supervision) Act 1993 and associated Regulations. The Fund is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
International Financial Reporting Standards (IFRSs) form the basis of Australian Accounting Standards adopted by the Australian Accounting Standards Board. The financial statements of the Fund do not comply with IFRSs due to the requirements of AASB 1056.
Hi Phuong
My view is that unless there is a specific reason that general purpose financial statements be prepared that the note should be amended to reflect that the Fund is a non-reporting entity.
An extract of Note 1 from a Fund done recently in BGL360 states:
"Note 1: Summary of Significant Accounting Policies
The trustees have prepared the financial statements on the basis that the Superannuation Fund is a non-reporting entity because there are no users dependent on general purpose financial statements. The financial statements are therefore special purpose
financial statements that have been prepared in order to meet the requirements of the Superannuation Industry (Supervision) Act 1993 and associated Regulations, the trust deed of the Fund and the needs of members.
The financial statements have been prepared on a cash basis and are based on historical costs, except for investments which have been measured at market value.
The following significant accounting policies, which are consistent with the policies applied in the previous period unless otherwise stated, have been adopted in the preparation of the financial statements.
The financial statements were authorised for issue by the Trustee(s)".
One of my concerns would be if they have prepared general purpose financial statements have they prepared a statement of cash flows and complied with all the reporting requirements of AASB 1056.
Thanks
SMSF AAA