IAS 19 – Employee benefit plans with a promised return on contributions or notional contributions
This issue involves accounting for plans that have a stated contribution level but provide a minimum guaranteed return. Under IAS 19 these would technically be defined as defined benefit plans because of the minimum guarantee. Without the guarantee they would be defined benefit plans.
Current status of the project
After issuing a Draft Interpretation, IFRIC agreed to remove this topic from its agenda at its November 2006 meeting because the IASB has begun a project on post-retirement benefits, provided it had the option to restart the project should developments in the IASB's project make it necessary or appropriate.
With respect to the distinction between defined benefit and defined contribution plans, the IFRIC decided to split the project into two parts:
- The part dealing with the distinction of defined benefit plans and defined contribution plans should be addressed by the IASB
- The other part, addressing how to determine the allocation of future salary increases in the measurement of the present value of the defined benefit obligation, should be developed further by the staff and submitted to the Agenda Committee and the IFRIC as a potential agenda item.
|8 July 2004||IFRIC D9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions published||Comment deadline 21 September 2004|