ACCOUNTING

Narrow-Scope Amendments Are Issued For Pension Accounting (IAS 19)

Effective on or after January 1, 2019, amendments to IAS 19: Employee Benefits will require companies to use updated assumptions to determine pension expenses when changes to a defined benefit pension plan occur. IAS 19 currently does not specify how companies should determine these expenses. 

When a change to a defined benefit pensoin plan—an amendment, curtailment or settlement—takes place, IAS 19 requires a company to remeasure its net defined benefit liability or asset. Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) requires that a company use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan.

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) is available on the IASB website, but an eIFRS Professional or Comprehensive subscription is required to view the amendments.

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