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Accounting for hybrid plans that fall within the definition of defined benefit plans in IAS 19, Employee Benefits [Completed]

Effective date: 

Effective date:

After considering the initial research, together with feedback received through the 2015 Agenda Consultation, the Board (i) added to its research pipeline a new, narrow-scope feasibility study on pension benefits that depend on asset returns; and (ii) decided not to investigate other aspects of accounting for post-employment benefits.

Last up­dated:

July 2016

Overview

This project considers the accounting for hybrid plans that fall within the definition of defined benefit plans in IAS 19, Employee Benefits, but under which employers and employees share risk. The use of such hybrid plans is increasing in many jurisdictions. Such plans were not envisaged when IAS 19 was first developed.

The Interpretations Committee had attempted to develop a solution to address the accounting for such plans including contribution-based promises. However, the Interpretations Committee finally decided to remove the project from its agenda in May 2014.

At its November 2015 meeting, the IASB received an update on its research project on post-employment benefits. The IASB expects to decide its next steps, if any, after its 2015 Agenda Consultation. In the meantime, the staff will continue their internal analysis and information gathering.

Other developments

July 2016

On July 20, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that, after considering the initial research, together with feedback received through the 2015 Agenda Consultation, the Board (i) added to its research pipeline a new, narrow-scope feasibility study on pension benefits that depend on asset returns; and (ii) decided not to investigate other aspects of accounting for post-employment benefits.

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