EFRAG publishes discussion paper on pension plans with an asset-return promise

  • EFRAG document (dk green) Image

15 May 2019

The European Financial Reporting Advisory Group (EFRAG) has published a discussion paper (DP) 'Accounting for Pension Plans With an Asset-Return Promise'. The DP explores alternative accounting treatments for post-retirement employee benefits, promising the higher of the return on an identified item or group of items and a minimum guaranteed return.

The DP considers three alternatives for accounting for pension plans in the scope of the project:

  • capped asset return approach;
  • fair-value based approach;
  • fulfilment value approach.

The DP and a press release are available on the EFRAG website. Comments are due by 15 November 2019. There is also a short video presentation explaining the main ideas behind the DP.


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