EFRAG draft comment letter on amendments to employee contributions
29 Apr 2013
The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2013/4 'Defined Benefit Plans: Employee Contributions (Proposed amendments to IAS 19)' which was published on 25 March 2013.
The EFRAG supports the IASB's proposed amendments to IAS 19. The draft comment letter states:
EFRAG agrees with the IASB’s proposals on the basis that they clarify the existing requirements in IAS 19 (2011) on accounting for contributions from employees or third parties and provide relief to preparers. We also support the IASB in addressing the existing inconsistency in IAS 19 (2011) in relation to the attribution of these contributions as this would reduce potential divergence in practice.
Comments on the draft letter are invited by 5 July 2013. Also, the EFRAG requests feedback on whether constituents know of any circumstances where the application of the practical expedient provided by the IASB would result in contributions being inappropriately recognised as reductions in service cost.
Click for:
- EFRAG press release with link to the draft comment letter (link to EFRAG website).
- Our previous story on the Exposure Draft ED/2013/4 Defined Benefit Plans: Employee Contributions (Proposed amendments to IAS 19).
- Deloitte's IFRS in Focus newsletter on the proposals amendments to IAS 19 (2011).
