This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IFRIC 14 — Voluntary prepaid contributions under a minimum funding requirement

Background

The requirements of IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction may produce unintended consequences in the treatment of voluntary prepaid contributions under a minimum funding requirement. This is because paragraph 22 of IFRIC 14 requires an entity to include particular expected cash outflows in assessing whether there is an asset at the reporting date.

In some cases, including these cash flows implies there is a liability at the reporting date when there is not. Therefore, this project was to consider a proposed amendment to IFRIC 14 to clarify the accounting where an entity makes voluntary prepaid contributions and there is a minimum funding requirement.

This project started as a project of the IFRS Interpretations Committee, but the Committee removed the project from its agenda when the IASB commenced its own project in January 2009.

 

Current status of the project

This project has been completed. The IASB issued Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14) on 26 November 2009.

 

Project milestones

DateDevelopmentComments
28 May 2009 Exposure draft ED/2009/4 Prepayments of a Minimum Funding Requirement (Proposed amendments to IFRIC 14) issued Comment deadline 27 July 2009
26 November 2009 Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14) published Effective for annual periods beginning or after 1 January 2011

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.