Need to know — Amendments to IAS 19 (2011) to clarify the accounting for contributions that are linked to service

Published on: 21 Nov, 2013

This edition of ‘Need to know’ outlines the recent amendments to the accounting under IAS 19 (2011) Employee Benefits for contributions from employees or third parties that are linked to service. 

  • The amendments to IAS 19 (2011) permit contributions that are independent of the number of years of service to be recognised as a reduction in the service cost in the period in which the service is rendered, instead of allocating the contributions to periods of service. 
  • Other contributions by employees or third parties are required to be attributed to periods of service either using the plan’s contribution formula or on a straight-line basis. 
  • The amendments are effective from 1 July 2014, with earlier application permitted.


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.