United States

Proposed narrow-scope amendments for pension accounting


When a defined benefit plan is amended, curtailed or settled during a reporting period, the entity needs to update the assumptions about its obligation and fair value of its plan assets to calculate costs related to these changes. The International Accounting Standards Board recently proposed amendments to International Accounting Standard (IAS) 19, Employee Benefits, to require the entity to use the updated information to determine current service cost and net interest for the period followed by these changes. The Exposure Draft also includes proposed amendments to IFRIC 14, IAS 19 –The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, to address how the powers of other parties, such as the trustees of the plan, to enhance benefits for plan members or wind up a 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 available for comment until October 19, 2015.