Newsletter on employee benefits exposure draft

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17 May 2010

Deloitte's IFRS Global Office has published an IAS Plus Update Newsletter – Closing the Corridor – IASB Proposes Significant Changes to Pension Accounting.

On 29 April 2010, the IASB issued an exposure draft (ED) of proposed amendments to IAS 19 Employee Benefits. Among the amendments proposed to IAS 19 are:
  • Immediate recognition of all estimated changes in the cost of providing defined benefits and all changes in the value of plan assets. This would eliminate the various methods currently in IAS 19, including the 'corridor' method, that allow deferral of some of those gains or losses.
  • A new presentation approach that would clearly distinguish between different types of gains and losses arising from defined benefit plans. Specifically, the ED proposes that the following changes in benefit costs should be presented separately:
    • service cost – in profit or loss
    • finance cost (that is, net interest on the net defined benefit liability) – as part of finance costs in profit or loss
    • remeasurement – in other comprehensive income
    Comment deadline on the ED Defined Benefit Plans is 6 September 2010.

Click for IAS Plus Newsletter: Closing the Corridor — IASB Proposes Significant Changes to Pension Accounting



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