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Deloitte comment letter on IFRIC D9

  • Deloitte Comment Letter Image

22 Sep 2004

We have submitted our letter of comment on IFRIC Draft Interpretation D9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions: (PDF 59k). Summary of D9. Deloitte's overall view: We note that the IFRIC's conclusions in paragraphs 4(a) and 5 of the draft interpretation are consistent with the tentative decisions of the US Financial Accounting Standards Board (FASB).

Given the similarities between International Financial Reporting Standards and US GAAP in the accounting for employee benefits, we encourage the IFRIC to coordinate with the FASB (and other national standard-setters) in the development of guidance on the accounting for employee benefit plans that have a promised return (sometimes referred to as 'cash balance plans').

We generally agree that an employee benefit plan with a promised return on contributions or notional contributions is a defined benefit plan under IAS 19 Employee Benefits (IAS 19) and that in applying IAS 19 to such benefits the specified changes in the plan liability should be treated as actuarial gains and losses

You will find all past Deloitte comment letters to IASB/IASC Here.

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