Home' Annual Report : Annual Report 2016 Contents 20. INVESTMENT IN
CPA Aus tralia (M) sdn. Bhd.
CPA Aus tralia (shanghai) ltd
CPA Aus tralia Advice Pty ltd
The amount of investment represents the historical capital invested into each entity, which may be different to
the fair value of that investment.
CPA Australia Sdn. Bhd. is incorporated in Malaysia in order to facilitate the provision of ser vices to members in Malaysia.
CPA Australia (Shanghai) Ltd is incorporated in China in order to facilitate the provision of ser vices to members in
Shanghai. CPA Australia Advice Pty Ltd is incorporated in Australia in order to provide high quality, independent and
transparent financial advice under an Australian Financial Services Licence (AFSL) and Australian Credit Licence (ACL).
21. SUPERANNUATION AND
DEFINED BENEFIT PLAN
Employees have the choice to contribute either to the
CPA Australia Superannuation Plan of the ANZ Smar t
Choice Corporate Superannuation (‘the plan’) or their
own nominated fund. Employees may contribute to the
funds at various percentages of their total salar y cost.
The plan provides both accumulation and defined
benefit divisions. Eligibility to enter the defined
benefit divisions ceased on 31 December 1999.
Actuarial gains and losses are recognised immediately
through the Statement of Comprehensive Income in the year
in which they occur.
Defined benefit members receive lump sum benefits
on retirement, death, disablement and withdrawal.
The defined benefit section of the fund is closed
to new members. All new members receive
accumulation benefits only. At 31 December 2016,
the Defined Benefit Plan had four members.
The Superannuation Industry (Supervision) (SIS) legislation
governs the superannuation industry and provides the
framework within which superannuation funds operate.
The SIS Regulations require an ac tuarial valuation to be
performed for each defined benefit superannuation fund
ever y three years, or ever y year if the fund pays defined
benefit pensions unless an exemption has been obtained.
GOVERNANCE OF THE FUND
The Fund’s Trustee is responsible for the governance
of the Fund. The Trustee has a legal obligation to
ac t solely in the best interest s of Fund beneficiaries.
The Trustee has the following roles;
• Administration of the Fund and the payment to
the beneficiaries from Fund assets when required in
accordance with the Fund rules
• Management and investment of the Fund assets
• Compliance with superannuation law
and other applicable regulations
The prudential regulator, the Australian Prudential
Regulation Authority (APRA), licenses and
supervises regulated superannuation plans.
There are a number of risks to which the Fund
exposes the Employer. The more significant
risks relating to the defined benefits are:
• Investment risk – the risk that investment returns will
be lower than assumed and the Employer will need
to increase contributions to offset this shor tfall
• Salar y grow th risk – the risk that wages or salaries (on
which future benefits amount s will be based) will rise more
rapidly than assumed, increasing defined benefit amounts
and thereby requiring additional employer contributions
• Legislative risk – the risk is that legislative
changes could be made which increase the
cost of providing the defined benefits
• Timing of members leaving ser vice – as the Fund has
only a small number of members, if members with large
benefits or groups of members leave, this may have an
impact on the financial position of the Fund, depending
on the financial position of the Fund at the time they
leave. The impact may be positive or negative, depending
upon the circumstances and timing of the withdrawal
The defined benefit asset s are invested in the Legg Mason
Balanced investment option. The assets are diversified
within this investment option and therefore the Fund
has no significant concentration of investment risk.
There were no fund amendments affecting the defined
benefits payable, curtailments or settlements during the year.
CPA AustrAliA 2O16 integrAted rePOrt
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