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.
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.