IASB proposes amendments to IAS 19 and IFRIC 14 on pension accounting
Jun 18, 2015
On June 18, 2015, the International Accounting Standards Board (IASB) published an Exposure Draft (ED) of proposed amendments to IAS 19 "Employee Benefits" and IFRIC 14 "IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction". The amendments address two issues submitted to the IFRS Interpretations Committee. Comments are requested by October 19, 2015.
Requests were submitted to the IFRS Interpretations Committee to clarify:
- the calculation of current service cost and net interest when an entity remeasures the net defined benefit liability (asset) when a plan amendment, curtailment or settlement occurs; and
- whether a trustee's power to augment benefits or to wind up a plan affects the employer's unconditional right to a refund and thus, in accordance with IFRIC 14, restricts recognition of an asset.
As both issues relate to IAS 19 and as the IASB believes that a single package of amendments carried out at the same time would reduce the administrative burden on those responding to both issues, the IASB decided to deal with the two issues in one narrow-scope Exposure Draft.
Please click for:
- IASB press release (link to IASB website)
- Access to the exposure draft on the IASB website
