IASB issues amendment to IAS 19 Employee Benefits
07 February 2018
The International Accounting Standard Board (IASB) has amended IAS 19 Employee Benefits to specify how companies determine pension expenses when changes to a defined benefit plan occur
IAS 19 Employee Benefits specifies how a company accounts for a defined benefit plan. When a plan amendment, curtailment or settlement takes place, IAS 19 requires a company to remeasure its net defined benefit liability or asset.
The amendments require a company to use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. Until now, IAS 19 did not specify how to determine these expenses for the period after the change to the plan.
The revision to IAS 19 apply to plan amendments, curtailments and settlements occurring on or after the beginning of the first annual reporting period that begins on or after 1 January 2019. Earlier application is permitted.
Further information is available from the IASB web site here.