Pension Benefits that Depend on asset Returns – International Accounting Standards Board
Date recorded:
At its meeting on December 14-16, 2020, the IASB met to discuss illustrative examples of applying the capped approach to pension benefits that vary with asset returns. The approach would cap the projection of the cash flows that vary with asset returns at the discount rate specified in IAS 19 Employee Benefits. The Board discussed how the capped approach would affect the outcome of applying the requirements in IAS 19. The Board was not asked to make any decisions. In February 2021 the Board expects to complete its review of the research and discuss an initial analysis of how the capped approach could be introduced into IAS 19.
Review the IASB Update and podcast on the Board's Web site.