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EFRAG issues draft endorsement advice on amendments to IAS 19 regarding plan amendments, curtailments, and settlements

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

21 Mar 2018

The European Financial Advisory Group (EFRAG) has issued for comment its draft endorsement advice for the use of the amendments to IAS 19 regarding plan amendments, curtailments, and settlements in the European Union (EU).

The amendments confirm that if a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement.

In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.

EFRAG recommends the endorsement of the Amendments. EFRAG’s initial assessment is that the Amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.

EFRAG also considers that the overall benefits of the Amendments are likely to outweigh the associated costs to implement them.

Comments are requested by 21 April 2018.

For more information, see the press release, draft endorsement advice letter and the invitation to comment on the EFRAG’s website. EFRAG has also updated its endorsement status report that is available here.

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