This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

EFRAG comment letter on the IASB's Exposure Draft ED/2013/4 ‘Defined Benefit Plans: Employee Contributions (proposed amendments to IAS 19)’

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

17 Jul 2013

The European Financial Reporting Advisory Group (EFRAG) has issued their comment letter on the International Accounting Standard Board’s (IASB’s) Exposure Draft ED2013/4 ‘Defined Benefit Plans: Employee Contributions (proposed amendments to IAS 19)’.

The proposed amendments aim to clarify the accounting for employee contributions set out in the formal terms of a defined benefit plan if these contributions are linked to service. 

The EFRAG position is consistent with that of the Financial Reporting Council (FRC) and the European Securities and Markets Authority (ESMA) in supporting the proposed amendments to IAS 19.  The EFRAG comment letter is also consistent with their draft comment letter published in April.  In addition to the comments made in the draft comment letter the final EFRAG comment letter highlights EFRAG’s desire for the ED to include practical guidance noting: 

….the IASB should ensure that the wording of the proposed amendments does not lead to confusion and uncertainties in its practical application.  We also recommend the IASB to provide application guidance as part of the ED to illustrate the calculations required by IAS 19 (2011) when the practical expedient cannot be applied or entities choose not to apply the practical expedient. 

Detailed responses to the questions in the ED can be found here (link to EFRAG press release including comment letter on EFRAG website) 

Click for:

Our previous story on the Exposure Draft ED/2013/4 'Defined Benefit Plans: Employee Contributions (Proposed amendments to IAS 19)'.

Deloitte's IFRS in Focus newsletter on the proposals amendments to IAS 19 (2011).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.