Assets Cash Over the Hill Superannuation Plan Statement of Financial Position for the Year Ended 30 June 2020 Receivables Listed Australian shares held directly Australian fixed-interest securities held directly Property held directly Reinsurance assets Deferred tax assets Total assets Liabilities Payables Income tax payable Deferred tax liabilities Insurance liabilities Total liabilities excluding member benefits $000 678000 1200000 48900340 18540000 2400000 25700 187 000 71931040 890000 532000 2340000 23400 3785400 Net assets available for member benefits Defined benefit member liabilities Total net liabilities Equity Operational risk reserve Defined benefits that are (over-) underfunded Total equity Source: Modified from Illustrative Example II, AASB 1056, p. 45. $000 68145640 76 300 000 8154360 2715402 5438958 8154360 Required Answer the following questions about the statement of financial position of Over the Hill Superannuation Plan prepared in accordance with the requirements of AASB 1056. (a) What type of plan is Over the Hill Superannuation Plan? Justify your answer using evidence from the statement of financial position. (b) The difference between plan assets and plan liabilities (of which defined member benefits is the major liability) is shown as equity comprising (i) an operational risk reserve and (ii) defined benefits that are underfunded. (i) Explain why the deficit arising from net assets being less than plan liabilities is shown as equity. (ii) Explain the nature of the equity item 'defined benefits underfunded'. (iii) Explain the nature of the operational risk reserve. (LOS)