EFRAG issues final endorsement advice on amendments to IAS 19 regarding plan amendments, curtailments, and settlements
01 Jun, 2018
The European Financial Advisory Group (EFRAG) has issued its final 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 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.
A press release and the endorsement advice letter to the European Commission are available on the EFRAG website. EFRAG has also updated its endorsement status report.
