Responses to IASB Documents for Comment

IAS 19 Employee Benefits                              

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 2015

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.

Exposure Draft – Defined Benefit Plans: Employee Contributions (Proposed amendments to IAS 19) – March 2013

On July 24, 2013, the AcSB submitted a comment letter responding to the IASB's Exposure Draft issued in March 2013.  The letter supports the narrow-scope amendments to IAS 19 Employee Benefits, which include providing a practical expedient to simplify the accounting for contributions for defined benefit plans from employees or third parties.  However, the letter requests some clarifications on the use of the practical expedient, and on how to incorporate negative benefits from these contributions. Read the AcSB letter posted by the IASB.

Exposure Draft – Defined Benefit Plans (Proposed amendments to IAS 19) – April 2010

On September 2, 2010, AcSB staff submitted a comment letter responding to the IASB's Exposure Draft, "Defined Benefit Plans (Proposed amendments to IAS 19)." The letter supports the IASB’s proposal for the recognition of all changes in the value of plan assets and in the defined benefit obligation in the period in which they occur. The letter also supports the proposed improvements to the presentation of the changes in plan assets and the defined benefit obligation, but notes concerns with some aspects of presentation such as the net interest approach in determining the finance cost component. Although the letter agrees with the disclosure objectives, it expresses concern that literal compliance of the disclosure requirements will continue to result in voluminous disclosures that do not highlight the risks of these plans. The letter raises concern that significant practice issues with IFRIC 14, IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, have not been addressed and urges the IASB to resolve them as part of finalizing the amendments. The AcSB staff letter posted by the IASB is available here.

Exposure Draft – Discount Rate for Employee Benefits (Proposed amendments to IAS 19) – August 2009

On September 28, 2009, AcSB staff submitted a comment letter responding to the IASB's Exposure Draft. The letter fully supports the proposals. The AcSB staff letter posted by the IASB is available here.