EFRAG final comment letter on the IASB's Exposure Draft of amendments to IAS 19 and IFRIC 14

  • EFRAG document (dk green) Image

06 Nov, 2015

The European Financial Reporting Advisory Group (EFRAG) has published its comment letter on the IASB exposure draft (ED) 2015/5, which proposed amendments to IAS 19 and IFRIC 14.

The IASB issued 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.  This exposure draft proposes amending these pronouncements 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.

In its final comment letter, EFRAG supports the IASB's proposals. 

The press release and full comment letter are available on the EFRAG website.

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