Plan Amendment, Curtailment or Settlement (Amend IAS 19)

Current Status Next Steps

IASB is deliberating comments received on its Exposure Draft.

First half of 2018 – IASB to issue final amendments.

BACKGROUND

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Accounting Standard (IAS) 19 Employee Benefits. This project was combined with proposed amendments to IFRIC 14 IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction at the exposure draft stage.

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The objective of this project is to improve information to investors and address some diversity in practice related to pension accounting requirements.

The amendments to IAS 19 relate to using updated information to determine current service cost and net interest for the period following a plan amendment, curtailment or settlement. 

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB® proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.

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PROJECT NEWS & DECISION SUMMARIES

AcSB Response – 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)
On September 24, 2015, the AcSB submitted a comment letter responding to the IASB's Exposure Draft issued in June 2015. The letter supports the proposed narrow-scope amendments to IAS 19 Employee Benefits and IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction with the exception of the transition requirements. The letter disagrees with requiring retrospective application because the cost of retrospective application exceeds the benefit.  Entitles would incur time and expense to perform additional calculations that are not particularly meaningful. The letter suggests that the proposed amendments be applied prospectively. Read the AcSB letter posted by the IASB.

AcSB 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)
July 28, 2015. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments, on the form provided, by October 19, 2015.

IASB 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)
June 25, 2015.  The IASB has issued an Exposure Draft proposing amendments to IAS 19 Employee Benefits and IFRIC 14 IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. Canadian stakeholders are encouraged to submit their comments to the IASB by October 19, 2015.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.