IASB opens consultation on changes to pension accounting

IASB opens consultation on changes to pension accounting

IASB consults on proposed narrow-scope amendments to its pension accounting requirements

THE International Accounting Standards Board (IASB) has published a consultation on proposed narrow-scope amendments to its pension accounting requirements, Professional Pensions reports.

Under current practice, a defined benefit (DB) scheme needs to update the assumptions about its obligation and fair value of its plan assets to calculate costs when the plan is amended, curtailed or settled during a reporting period.

But the suggested amendments to IAS 19 Employee Benefits specify the entity would be required to use the updated information to determine current service cost and net interest for the period followed by these changes.

The proposed amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements address how the powers of other parties, such as the trustees of the plan, affect an entity’s right to a refund of a surplus from the plan.

The Exposure Draft Remeasurement on a Plan Amendment, Curtailment or Settlement/Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14) is open for public comment until 19 October.

Sister publication Financial Director revealed earlier this year that the international standard setter wasconsidering a shake-up of pensions accounting. Writing in Financial Director, Stephen Cooper, an IASB board member at the IFRS Foundation said it was ‘necessary’ to reconsider aspects of pension accounting.

 

 

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource