IFRIC Issues

Date recorded:

A draft of IFRIC Draft Interpretation D6 Employee Benefits Plans with a Guaranteed Minimum Return on Contributions or Notional Contributions had been sent to Board members for negative clearance. One member was sufficiently concerned by the proposals to request that the topic be discussed in Board session.

The Board discussed the issues and agreed that although they may not favour the outcomes of the Interpretation, the draft is an appropriate interpretation of the requirements of IAS 19. Board members noted that the conceptual concerns with the draft Interpretation are a result of conceptual shortcomings of IAS 19.

The Board agreed that IFRIC should proceed to issue the draft Interpretation. The Board noted that the FASB is currently considering a similar issue, and that the direction they are taking should be considered by the IFRIC in their deliberations prior to the issuance of a final interpretation. The Board reiterated the importance of re-opening IAS 19 for a comprehensive overhaul in the relatively near future.

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