18th October 2018
MGI Worldwide’s Global IFRS Group has prepared a paper to explain the amendments to IAS 19 Employee Benefits issued in February 2018 by the International Accounting Standards Board (IASB), which addresses the accounting when a plan amendment, curtailment or settlement occurs during a reporting period.
The paper explains that if a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period after the remeasurement are determined using the assumptions used for the remeasurement. In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The amendment of IAS 19 might mean that the net defined benefit liability is measured more often. The amendments are applied prospectively to plan amendments, settlements or curtailments that occur on or after 1 January 2019.
DOWNLOAD the complete IAS 19 Employee Benefits Paper HERE
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