IASB proposes 'asset ceiling' amendment to IAS 19

  • IASB Exposure Draft (original) Image

25 Feb 2002

IASB has published an exposure draft of a proposed amendment to IAS 19 'Employee Benefits' to prevent a counter-intuitive result produced by the interaction of two aspects of IAS 19 - the option to defer gains and losses in the pension fund and the limit on the amount that can be recognised as an asset (the 'asset ceiling').

Because of the wording of the asset ceiling, a gain is sometimes recognised solely as a result of deferring and amortising an actuarial loss or added past service cost in the current period. Conversely, deferral of actuarial gains sometimes causes a loss to be recognised. The IASB concluded that reporting gains and losses in these circumstances is not appropriate, and the proposed amendment would prevent their recognition.

Comments are due 25 March 2002 -- a 30-day comment period. Click to Download the IASB Press Release (PDF 12k).


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