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.

IAS 19 — Allocation of benefits to periods of service

Issue description

Paragraph 67 of IAS 19 Employee Benefits (1998) requires that benefits generally should be allocated to periods of service according to the benefit formula. However, if the benefit formula allocates a materially higher level of benefit to later years of service, then straight-line allocation should be used.

IFRIC considered the issue of whether expected increases in salary should be taken into account in determining whether a benefit formula expressed in terms of current salary will give rise to materially higher levels of benefits in later years.


Current status of the project

At its December 2003 meeting, IFRIC reaffirmed its position that it will not address this issue since (a) it is not a priority issue, (b) IAS 19 appears clear enough to interpret, and (c) any proposed interpretation by IFRIC would require an amendment to IAS 19 which would not happen anytime soon.


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.