IAS 19 — Distinguishing between defined benefit and defined contribution plans (hybrid plans)

Issue description

In the course of analysing the comments received on IFRIC D9 Employee Benefits with a Promised Return on Contribution or Notional Contributions, staff noted that some confusion existed amongst constituents as to the appropriate distinction between defined benefit and defined contribution plans.

This confusion was brought to the attention of the IFRIC, where the IFRIC agreed that staff should consider the development of appropriate guidance on distinguishing between the two types of plan, for possible inclusion in the finalised version of D9.


Current status of the project

IFRIC agreed to remove D9 from its agenda at its November 2006 meeting, provided it had the option to restart the project should developments in the IASB's project on post-retirement benefits make it necessary or appropriate.

With respect to the distinction between defined benefit and defined contribution plans, the IFRIC decided to split the project into two parts:

  • The part dealing with the distinction of defined benefit plans and defined contribution plans should be addressed by the IASB
  • The other part, addressing how to determine the allocation of future salary increases in the measurement of the present value of the defined benefit obligation, should be developed further by the staff and submitted to the Agenda Committee and the IFRIC as a potential agenda item.


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.