[The Auditors Institute Ltd]

Hello Christopher

Thanks for the question.

In  most instances, financial accounts for self managed superannuation funds are special purpose financial reports.  So they do not have to be prepared in accordance with AASB 112.

Hence the practice you have described, where accountants treat the application of tax-effect accounting (whether fully compliant with AASB 112 or not) as optional.

I also agree with your suggestion that to the extent a fund is in retirement phase, that any previously recognised PDIT (or Deferred Tax Liability) can be reversed.

Would be pleased to hear the views of other auditors on this matter.

Best regards

The Auditors Institute