EFRAG draft comment letter on the IASB's exposure draft on amendments to IAS 19 and IFRIC 14 on pension accounting

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24 Jul, 2015

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on IASB exposure draft (ED) ED/2015/5 “Remeasurement on a Plan Amendment, Curtailment or Settlement / Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14).”

On 18 June 2015, the IASB issued ED/2015/5 to address two issues submitted to the IFRS Interpretations Committee. The two issues are to clarify (1) 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 (2) 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.

In its draft comment letter, EFRAG supports the proposed amend­ments; however, the EFRAG would like input from constituents regarding any impediments concerning the limited retrospective application proposals.

Comments on the draft comment letter are due by 9 October 2015.

For more in­for­ma­tion, see the press release and draft comment letter on the EFRAG’s website.

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