IFRIC 14 – Voluntary prepaid contributions under a minimum funding requirement
Background
The requirements of IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction may produce unintended consequences in the treatment of voluntary prepaid contributions under a minimum funding requirement. This is because paragraph 22 of IFRIC 14 requires an entity to include particular expected cash outflows in assessing whether there is an asset at the reporting date.
In some cases, including these cash flows implies there is a liability at the reporting date when there is not. Therefore, this project was to consider a proposed amendment to IFRIC 14 to clarify the accounting where an entity makes voluntary prepaid contributions and there is a minimum funding requirement.
This project started as a project of the IFRS Interpretations Committee, but the Committee removed the project from its agenda when the IASB commenced its own project in January 2009.
Current status of the project
This project has been completed. The IASB issued Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14) on 26 November 2009.
Project milestones
| Date | Development | Comments |
|---|---|---|
| 28 May 2009 | Exposure draft ED/2009/4 Prepayments of a Minimum Funding Requirement (Proposed amendments to IFRIC 14) issued | Comment deadline 27 July 2009 |
| 26 November 2009 | Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14) published | Effective for annual periods beginning or after 1 January 2011 |
