Post-employment Benefits

The treatment of group defined benefit plans in the separate financial statements of entities within the group

The staff proposed amendments to IAS 19 that would bring group plans within the scope of the provisions for multi-employer plans. The staff informed the Board that IFRIC is proposing an interpretation in respect of multi-employer plans.

The Board agreed that this should apply to those entities that would fall under the conditions in IAS 27 for not preparing group financial statements. Otherwise IAS 19 would apply and a reasonable basis of application should be applied.

Whether actuarial gains and losses that are recognised outside the income statement should be recognised in a separate component of equity

The Board considered the issue of whether actuarial gains and losses that are recognised outside the income statement, in a statement of total recognised income and expenses, should be shown in a separate component of equity and not included in retained earnings.

The staff recommended that actuarial gains and losses should be recognised immediately in retained earnings, not a separate component of equity.

The Board agreed.

Whether, when actuarial gains and losses are recognised immediately, an amount in equity represented by the defined benefit asset or liability should be presented separately

The staff recommended not requiring the separate presentation of the amount of equity represented by the defined benefit asset or liability.

The Board agreed.

How should an adjustment relating to the asset ceiling be treated when actuarial gains and losses are recognised outside income

The Board considered whether the affect of the asset ceiling limit should be treated as an actuarial gain or loss and recognised outside the income statement or as an adjustment to be recognised in the income statement.

The staff recommended treating the entire impact of the asset ceiling as an actuarial gain or loss.

The Board agreed.

Whether the sensitivity information previously proposed by the Board should form part of the short-term amendments

The Board agreed to not include this within the short-term amendments.