IFRIC proposes guidance on pension accounting
25 Aug 2006
The International Financial Reporting Interpretations Committee (IFRIC) has published draft Interpretation D19 'IAS 19 – The Asset Ceiling: Availability of Economic Benefits and Minimum Funding Requirements'.
IFRIC D19 would clarify the interaction between statutory or contractual minimum funding requirements and the requirements of IAS 19 Employee Benefits.
The proposals clarify how to determine the limit on a pension plan asset that may be recognised in an employer's balance sheet as well as how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement.