DOCSLIB.ORG

IAS 19 International Financial Reporting Standards (Ifrss

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
IAS 19 International Financial Reporting Standards (Ifrss IAS 19 International Financial Reporting Standards (IFRSs) together with their accompanying documents are issued by the International Accounting Standards Board (IASB): 30 Cannon Street, London, EC4M 6XH, United Kingdom. Tel: +44 (0)20 7246 6410 Fax: +44 (0)20 7246 6411 Email: [email protected] Web: www.ifrs.org Copyright © 2011 IFRS Foundation IFRSs (which include International Accounting Standards and Interpretations) are copyright of the IFRS Foundation. The authoritative text of IFRSs is that issued by the IASB in the English language. Copies may be obtained from the IFRS Foundation Publications Department. Please address publication and copyright matters to: IFRS Foundation Publications Department 30 Cannon Street, London, EC4M 6XH, United Kingdom. Tel: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 2749 Email: [email protected] Web: www.ifrs.org All rights reserved. No part of this publication may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without prior permission in writing from the IFRS Foundation. The IFRS Foundation logo, the IASB logo, the IFRS for SMEs logo, the ‘Hexagon Device’, ‘IFRS Foundation’, ‘eIFRS’, ‘IAS’, ‘IASB’, ‘IASC Foundation’, ‘IASCF’, ‘IFRS for SMEs’, ‘IASs’, ‘IFRS’, ‘IFRSs’, ‘International Accounting Standards’ and ‘International Financial Reporting Standards’ are Trade Marks of the IFRS Foundation © IFRS Foundation 1 IAS 19 Approval by the Board of Actuarial Gains and Losses, Group Plans and Disclosures (Amendment to IAS 19) issued in December 2004 Actuarial Gains and Losses, Group Plans and Disclosures (Amendment to IAS 19) was approved for issue by twelve of the fourteen members of the International Accounting Standards Board. Messrs Leisenring and Yamada dissented. Their dissenting opinions are set out after the Basis for Conclusions. Sir David Tweedie Chairman Thomas E Jones Vice-Chairman Mary E Barth Hans-Georg Bruns Anthony T Cope Jan Engström Robert P Garnett Gilbert Gélard James J Leisenring Warren J McGregor Patricia L O’Malley John T Smith Geoffrey Whittington Tatsumi Yamada 2 © IFRS Foundation IAS 19 Approval by the Board of IAS 19 issued in June 2011 International Accounting Standard 19 Employee Benefits (as amended in 2011) was approved for issue by thirteen of the fifteen members of the International Accounting Standards Board. Messrs Engström and Yamada dissented. Their dissenting opinions are set out after the Basis for Conclusions. Sir David Tweedie Chairman Stephen Cooper Philippe Danjou Jan Engström Patrick Finnegan Amaro Luiz de Oliveira Gomes Prabhakar Kalavacherla Elke König Patricia McConnell Warren J McGregor Paul Pacter Darrel Scott John T Smith Tatsumi Yamada Wei-Guo Zhang © IFRS Foundation 3 IAS 19 BC CONTENTS BASIS FOR CONCLUSIONS ON IAS 19 EMPLOYEE BENEFITS Paragraphs INTRODUCTION BC1–BC2 AMENDMENTS MADE IN 2011 BC3–BC11 Matters not addressed as part of the limited scope project BC12–BC13 Employee Benefits Working Group BC14–BC15 CLASSIFICATION OF BENEFITS BC16–BC24 Short-term employee benefits: amendments issued in 2011 BC16–BC21 Long-term employee benefits: exposure draft published in 2010 BC22–BC24 SHORT-TERM EMPLOYEE BENEFITS BC25–BC27 Paid absences BC25–BC27 POST-EMPLOYMENT BENEFITS BC28–BC252 Distinction between defined contribution plans and defined benefit plans BC28–BC30 Defined contribution plans BC28–BC29 Defined benefit plans: amendments issued in 2011 BC30 Multi-employer plans and state plans BC31–BC51 Multi-employer plans: amendments issued in 2004 BC35–BC38 Multi-employer plans: exposure draft published in 2010 BC39 Group plans: amendments issued in 2004 BC40–BC50 State plan and group plan disclosures: amendments issued in 2011 BC51 Defined benefit plans: recognition and measurement BC52–BC199 Measurement date BC56–BC57 Interim reporting: effects of the amendments issued in 2011 BC58–BC64 Recognition: amendments issued in 2011 BC65–BC100 The asset ceiling BC101–BC102 An additional minimum liability BC103–BC105 Recognition of defined benefit cost as part of an asset: amendments issued in 2011 BC106–BC107 Actuarial valuation method BC108–BC113 Attributing benefit to periods of service BC114–BC116 Attributing benefit to periods of service: exposure draft published in 2010 BC117–BC120 4 © IFRS Foundation IAS 19 BC Actuarial assumptions—tax payable by the plan: amendments issued in 2011 BC121–BC124 Actuarial assumptions—administration costs: amendments issued in 2011 BC125–BC128 Actuarial assumptions—discount rate BC129–BC137 Actuarial assumptions—discount rate: exposure draft published in 2009 BC138–BC139 Actuarial assumptions—salaries, benefits and medical costs BC140–BC141 Actuarial assumptions—mortality: amendments issued in 2011 BC142 Actuarial assumptions—risk-sharing: amendments issued in 2011 BC143–BC150 Curtailments and settlements BC151 Plan amendments, curtailments and settlements: amendments issued in 2011 BC152–BC173 Plan assets BC174–BC177 Plan assets: amendments issued in 2000 BC178–BC190 Plan assets—measurement BC191–BC194 Reimbursements: amendments issued in 2000 BC195–BC199 Defined benefit plans—presentation of assets and liabilities BC200 Defined benefit plans—presentation of defined benefit cost: amendments issued in 2011 BC201–BC202 Defined benefit plans—disclosures: amendments issued in 2011 BC203–BC252 The Board’s approach to disclosures about defined benefit plans BC207–BC211 Selecting disclosure objectives BC212–BC214 Characteristics of the defined benefit plan and amounts in the financial statements BC215–BC228 Amount, timing and uncertainty of future cash flows BC229–BC243 Other disclosures considered but rejected by the Board BC244 Multi-employer plans BC245–BC252 OTHER LONG-TERM EMPLOYEE BENEFITS BC253 Death-in-service benefits BC253 TERMINATION BENEFITS: AMENDMENTS ISSUED IN 2011 BC254–BC261 Benefits payable in exchange for services BC256–BC257 Recognition BC258–BC260 Measurement BC261 INTERACTION BETWEEN PLAN AMENDMENTS, CURTAILMENTS, SETTLEMENTS, TERMINATION BENEFITS AND RESTRUCTURING COSTS BC262–BC268 © IFRS Foundation 5 IAS 19 BC TRANSITION BC269–BC271 First-time adopters BC270 Early application BC271 SUMMARY OF CHANGES FROM THE 2010 ED AND 2005 ED: AMENDMENTS ISSUED IN 2011 BC272–BC273 CONVERGENCE WITH US GAAP: AMENDMENTS ISSUED IN 2011 BC274–BC279 Multi-employer plan disclosures BC274 Recognition of defined benefit cost BC275–BC276 Termination benefits BC277–BC279 COST-BENEFIT CONSIDERATIONS: AMENDMENTS ISSUED IN 2011 BC280–BC284 APPENDIX Amendments to the Basis for Conclusions on other IFRSs DISSENTING OPINIONS 6 © IFRS Foundation IAS 19 BC Basis for Conclusions on IAS 19 Employee Benefits Introduction BC1 This Basis for Conclusions summarises the International Accounting Standards Board’s considerations in reaching its conclusions on IAS 19 Employee Benefits. Individual Board members gave greater weight to some factors than to others. BC2 The Board’s predecessor, the International Accounting Standards Committee (IASC), approved IAS 19 Employee Benefits in 1998, replacing a previous version of the standard. IASC developed the revision of IAS 19 in 1998 following its consideration of the responses to its exposure draft E54 Employee Benefits published in 1996. Since that date, IASC and the Board have made the following amendments that are still relevant: (a) In October 2000 IASC extended the definition of plan assets (see paragraphs BC178–BC190) and introduced recognition and measurement requirements for reimbursements (see paragraphs BC195–BC199). (b) In December 2004 the Board amended the accounting for multi-employer plans and group plans (see paragraphs BC35–BC38 and BC40–BC50). (c) In June 2011 the Board eliminated previous options for deferred recognition of changes in the net defined benefit liability (asset), amended where those changes should be recognised, amended the disclosure requirements for defined benefit plans and multi-employer plans, and made a number of other amendments (see paragraphs BC3–BC13). Amendments made in 2011 BC3 Accounting for post-employment benefit promises is an important financial reporting issue. Anecdotal evidence and academic research suggested that many users of financial statements did not fully understand the information that entities provided about post-employment benefits under the requirements of IAS 19 before the amendments made in 2011. Both users and preparers of financial statements criticised those accounting requirements for failing to provide high quality, transparent information about post-employment benefits. For example, delays in the recognition of gains and losses give rise to misleading amounts in the statement of financial position and the existence of various options for recognising gains and losses and a lack of clarity in the definitions lead to poor comparability. BC4 In July 2006 the Board added to its agenda a project on the accounting for post- employment benefit promises in response to calls for a comprehensive review of the accounting for post-employment benefit promises to improve the quality and © IFRS Foundation 7 IAS 19 BC transparency of financial statements. However, a comprehensive project to address all areas of post-employment benefit accounting could take many years to complete. Nevertheless, the Board recognised a short-term need to provide users of financial statements with better information about post-employment benefit promises.
Load more

Recommended publications
  • IFRS in Your Pocket 2019.Pdf
    IFRS in your pocket 2019 Contents Abbreviations 1 Foreword 2 Our IAS Plus website 3 IFRS Standards around the world 5 The IFRS Foundation and the IASB 7 Standards and Interpretations 15 Standards and Interpretations 24 Summaries of Standards and Interpretations in effect at 1 January 2019 29 Requirements that are not yet mandatory 100 IASB projects 104 Deloitte IFRS resources 111 Contacts 113 IFRS in your pocket |2019 Abbreviations ARC Accounting Regulatory Commission ASAF Accounting Standards Advisory Forum DP Discussion Paper EC European Commission ED Exposure Draft EFRAG European Financial Reporting Advisory Group GAAP Generally Accepted Accounting Principles IAS International Accounting Standard IASB International Accounting Standards Board IASC International Accounting Standards Committee (predecessor to the IASB) IFRIC Interpretation issued by the IFRS Interpretations Committee IFRS International Financial Reporting Standard IFRS Standards All Standards and Interpretations issued by the IASB (i.e. the set comprising every IFRS, IAS, IFRIC and SIC) PIR Post-implementation Review SEC US Securities and Exchange Commission SIC Interpretation issued by the Standing Interpretations Committee of the IASC SMEs Small and Medium-sized Entities XBRL Extensible Business Reporting Language XML Extensible Markup Language 1 IFRS in your pocket |2019 Foreword Welcome to the 2019 edition of IFRS in Your Pocket. It is a concise guide of the IASB’s standard-setting activities that has made this publication an annual, and indispensable, worldwide favourite. At its core is a comprehensive summary of the current Standards and Interpretations along with details of the projects on the IASB work plan. Backing this up is information about the IASB and an analysis of the use of IFRS Standards around the world.
    [Show full text]
  • Share-Based Payments – IFRS 2 Handbook
    Share-based payments IFRS 2 handbook November 2018 kpmg.com/ifrs Contents Variety increases complexity 1 1 Introduction 2 2 Overview 8 3 Scope 15 4 Classification of share-based payment transactions 49 5 Classification of conditions 66 6 Equity-settled share-based payment transactions with employees 81 7 Cash-settled share-based payment transactions with employees 144 8 Employee transactions – Choice of settlement 161 9 Modifications and cancellations of employee share-based payment transactions 177 10 Group share-based payments 208 11 Share-based payment transactions with non-employees 257 12 Replacement awards in a business combination 268 13 Other application issues in practice 299 14 Transition requirements and unrecognised share-based payments 317 15 First-time adoption of IFRS 320 Appendices I Key terms 333 II Valuation aspects of accounting for share-based payments 340 III Table of concordance between IFRS 2 and this handbook 374 Detailed contents 378 About this publication 385 Keeping in touch 386 Acknowledgements 388 Variety increases complexity In October 2018, the International Accounting Standards Board (the Board) published the results of its research project on sources of complexity in applying IFRS 2 Share-based Payment. The Board concluded that no further amendments to IFRS 2 are needed. It felt the main issues that have arisen in practice have been addressed and there are no significant financial reporting problems to address through changing the standard. However, it did acknowledge that a key source of complexity is the variety and complexity of terms and conditions included in share-based payment arrangements, which cannot be solved through amendments to the standard.
    [Show full text]
  • VALUE IFRS Plc Illustrative IFRS Consolidated Financial Statements December 2019
    VALUE IFRS Plc Illustrative IFRS consolidated financial statements December 2019 This publication presents the sample annual financial reports of a fictional listed company, VALUE IFRS Plc. It illustrates the financial reporting requirements that would apply to such a company under International Financial Reporting Standards as issued at 31 May 2019. Supporting commentary is also provided. For the purposes of this publication, VALUE IFRS Plc is listed on a fictive Stock Exchange and is the parent entity in a consolidated entity. VALUE IFRS Plc 2019 is for illustrative purposes only and should be used in conjunction with the relevant financial reporting standards and any other reporting pronouncements and legislation applicable in specific jurisdictions. Global Accounting Consulting Services PricewaterhouseCoopers LLP This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. About PwC At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 158 countries with more than 250,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com © 2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. VALUE IFRS Plc Illustrative IFRS consolidated financial statements December
    [Show full text]
  • IFRS Example Consolidated Financial Statements 2019
    IFRS Assurance IFRS Example Global Consolidated Financial Statements 2019 with guidance notes Contents Introduction 1 19 Cash and cash equivalents 61 IFRS Example Consolidated Financial 3 20 Disposal groups classified as held for sale and 61 Statements discontinued operations Consolidated statement of financial position 4 21 Equity 63 Consolidated statement of profit or loss 6 22 Employee remuneration 65 Consolidated statement of comprehensive income 7 23 Provisions 71 Consolidated statement of changes in equity 8 24 Trade and other payables 72 Consolidated statement of cash flows 9 25 Contract and other liabilities 72 Notes to the IFRS Example Consolidated 10 26 Reconciliation of liabilities arising from 73 Financial Statements financing activities 1 Nature of operations 11 27 Finance costs and finance income 73 2 General information, statement of compliance 11 28 Other financial items 74 with IFRS and going concern assumption 29 Tax expense 74 3 New or revised Standards or Interpretations 12 30 Earnings per share and dividends 75 4 Significant accounting policies 15 31 Non-cash adjustments and changes in 76 5 Acquisitions and disposals 33 working capital 6 Interests in subsidiaries 37 32 Related party transactions 76 7 Investments accounted for using the 39 33 Contingent liabilities 78 equity method 34 Financial instruments risk 78 8 Revenue 41 35 Fair value measurement 85 9 Segment reporting 42 36 Capital management policies and procedures 89 10 Goodwill 46 37 Post-reporting date events 90 11 Other intangible assets 47 38 Authorisation
    [Show full text]
  • IAS 19 Employee Benefits
    Issue 134 / February 2018 IFRS Developments IASB issues amendments to IAS 19 Employee Benefits What you need to know Highlights • The IASB’s amendments to In February 2018, the International Accounting Standards Board (IASB or IAS 19 address the accounting the Board) issued amendments to IAS 19 Employee Benefits which address when a plan amendment, the accounting when a plan amendment, curtailment or settlement occurs curtailment or settlement during the reporting period. occurs during a period. The amendments require entities to use the updated actuarial assumptions to determine current service cost and net interest for the remainder of the annual The amendments specify that • reporting period after such an event. current service cost and net interest for the remainder of The amendments also clarify how the requirements for accounting for a plan the annual reporting period amendment, curtailment or settlement affect the asset ceiling requirements. after a plan amendment, curtailment or settlement are The amendments do not address the accounting for ‘significant market determined based on updated fluctuations’ in the absence of a plan amendment, curtailment or settlement. actuarial assumptions. The amendments apply to plan amendments, curtailments or settlements that occur on or after 1 January 2019, with earlier application permitted. • The amendments clarify how the accounting for a plan Background amendment, curtailment or settlement affects applying Previously, the Board noted that current IAS 19 implies that entities should not the asset ceiling requirements. revise the assumptions for the calculation of current service cost and net interest during the period, even if an entity remeasures the net defined benefit liability • The amendments should be (asset) in the event of a plan amendment, curtailment or settlement.
    [Show full text]
  • IAS 19 Employee Benefits
    EC staff consolidated version as of 16 September 2009, EN – EU IAS 19 FOR INFORMATION PURPOSES ONLY International Accounting Standard 19 Employee Benefits Objective The objective of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognise: (a) a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and (b) an expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits. Scope 1 This Standard shall be applied by an employer in accounting for all employee benefits, except those to which IFRS 2 Share-based Payment applies. 2 This Standard does not deal with reporting by employee benefit plans (see IAS 26 Accounting and Reporting by Retirement Benefit Plans). 3 The employee benefits to which this Standard applies include those provided: (a) under formal plans or other formal agreements between an entity and individual employees, groups of employees or their representatives; (b) under legislative requirements, or through industry arrangements, whereby entities are required to contribute to national, state, industry or other multi-employer plans; or (c) by those informal practices that give rise to a constructive obligation. Informal practices give rise to a constructive obligation where the entity has no realistic alternative but to pay employee benefits. An example of a constructive obligation is where a change in the entity’s informal practices
    [Show full text]
  • IFRS in Focus — Accounting Considerations Related To
    IFRS in Focus March 2020 IFRS in Focus Accounting considerations related to the Coronavirus 2019 Disease Contents Introduction The coronavirus 2019 (COVID‑19) pandemic is affecting economic and financial markets, Introduction and virtually all industries are facing challenges associated with the economic conditions Material judgements and uncertainties resulting from efforts to address it. For example, many entities in the travel, hospitality, leisure, and retail industries have seen sharp declines in revenues due to regulatory and Going concern organisational mandates (e.g. “shelter in place” mandates, school closures) and voluntary changes in consumer behaviour (e.g. “social distancing”). Events after the end of the reporting period As the pandemic increases in both magnitude and duration, entities are experiencing Impairment of non-financial assets conditions often associated with a general economic downturn. This includes, but is not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, Financial Instruments further increases in government intervention, increasing unemployment, broad declines Revenue from contracts with customers in consumer discretionary spending, increasing inventory levels, reductions in production because of decreased demand, layoffs and furloughs, and other restructuring activities. Restructuring plans The continuation of these circumstances could result in an even broader economic Onerous contracts provisions downturn which could have a prolonged negative impact on an entity’s financial results. This IFRS in Focus discusses certain key IFRS accounting considerations related to Insurance recoveries conditions that may result from the COVID‑19 pandemic. The significance of the individual Lease contracts issues discussed below will of course vary by industry and by entity, but we believe that the following topics will be the most pervasive and difficult to address.
    [Show full text]
  • International Accounting Standard 19 Employee Benefits Objective Scope
    International Accounting Standard 19 Employee Benefits Objective 1 The objective of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognise: (a) a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and (b) an expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits. Scope 2 This Standard shall be applied by an employer in accounting for all employee benefits, except those to which IFRS 2 Share-based Payment applies. 3 This Standard does not deal with reporting by employee benefit plans (see IAS 26 Accounting and Reporting by Retirement Benefit Plans). 4 The employee benefits to which this Standard applies include those provided: (a) under formal plans or other formal agreements between an entity and individual employees, groups of employees or their representatives; (b) under legislative requirements, or through industry arrangements, whereby entities are required to contribute to national, state, industry or other multi-employer plans; or (c) by those informal practices that give rise to a constructive obligation. Informal practices give rise to a constructive obligation where the entity has no realistic alternative but to pay employee benefits. An example of a constructive obligation is where a change in the entity’s informal practices would cause unacceptable damage to its relationship with employees. 5 Employee benefits include: (a)
    [Show full text]
  • IAS 19 Employee Benefits
    ISAP 3 (Pro International Standard of Actuarial Practice 3 Actuarial Practice in Relation to IAS 19 Employee Benefits Note: The hyperlinks in the ISAP are linked to the respective definitions in the Glossary. These links will work well if your default browser is Internet Explorer. The links may not work consistently for other browsers. Unless you know your default browser is Internet Explorer, we recommend opening the ISAP and Glossary in separate windows and cross-referencing them. Adopted by the IAA Council 11 April 2015 Conformance changes adopted 23 April 2017 TABLE OF CONTENTS Preface .................................................................................................................................................. ii Introduction ......................................................................................................................................... iv Section 1. General ................................................................................................................................ 5 1.1 Purpose ................................................................................................................................. 5 1.2 Scope .................................................................................................................................... 5 1.3 Compliance .......................................................................................................................... 5 1.4 Relationship to ISAP 1 ........................................................................................................
    [Show full text]
  • Guide to Annual Financial Statements – Illustrative Disclosures 2016
    Illustrative disclosures Guide to annual financial statements IFRS® October 2016 kpmg.com/ifrs Contents About this guide 2 Independent auditors’ report 5 Consolidated financial statements 12 Financial highlights 13 Consolidated statement of financial position 14 Consolidated statement of profit or loss and other comprehensive income 16 Consolidated statement of changes in equity 18 Consolidated statement of cash flows 20 Notes to the consolidated financial statements 22 Appendices I New standards or amendments for 2016 and forthcoming requirements 150 II Presentation of comprehensive income – Two‑statement approach 152 III Statement of cash flows – Direct method 154 IV Example disclosures for entities that early adopt Disclosure Initiative (Amendments to IAS 7) 155 V Example disclosures for entities that early adopt IFRS 9 Financial Instruments (2014) 158 VI Other disclosures not illustrated in the consolidated financial statements 220 Keeping in touch 226 Acknowledgements 228 Notes Basis of preparation 22 Other information 118 1. Reporting entity 22 37. Operating leases 118 2. Basis of accounting 22 38. Commitments 119 3. Functional and presentation currency 22 39. Contingencies 119 4. Use of judgements and estimates 22 40. Related parties 120 41. Subsequent events 123 Performance for the year 24 5. Operating segments 24 Accounting policies 124 6. Discontinued operation 31 42. Basis of measurement 124 7. Revenue 33 43. Correction of errors 125 8. Income and expenses 34 44. Significant accounting policies 126 9. Net finance costs 36 45. Standards issued but not yet effective 142 10. Earnings per share 37 Employee benefits 39 11. Share‑based payment arrangements 39 12. Employee benefits 42 Income taxes 47 13.
    [Show full text]
  • Adoption of IAS 19 by Europe's Premier Listed Companies
    Research report 100 Adoption of IAS 19 by Europe’s Premier Listed Companies Adoption of IAS 19 by Europe’s Premier Listed Companies: Corridor Approach versus Full Recognition Jan.D.Fasshauer Justus-Liebig-Universität Giessen Professor Martin Glaum Justus-Liebig-Universität Giessen Professor Donna L. Street University of Dayton Certified Accountants Educational Trust (London) 2008 © The Association of Chartered Certified Accountants, 2008 Contents Executive summary 5 1. Introduction 11 2. Evolution of accounting for defined-benefit pension plans 13 3. Literature review 18 4. Methodology 22 5. Findings 26 6. Summary, conclusions and policy implications 34 Appendix 1: Tables 39 Appendix 2: Sample companies by index/country 73 Appendix 3: Sample screen shots of the IAS 19 tool screens used for data collection 76 Appendix 4: IAS 19 paragraph 120A defined-benefit pension disclosures collected in Step 1 and Step 2 (ie the IAS 19 Tool) 78 Appendix 5: Model for estimation of the impact on shareholders’ equity and P&L of immediate recognition of actuarial gains and losses through SORIE for companies currently using the corridor approach under IAS 19 80 References 81 ADOPTION OF IAS 19 BY EUROPE’S PREMIER LISTED COMPANIES 3 4 Executive summary While for several years a significant number of European THE NEW IAS 19 OPTION companies have prepared consolidated financial statements using International Financial Reporting Following the 2004 amendment of IAS 19 ‘Employee Standards (IFRS), 2005 represented the first year of IFRS Benefits’, companies with defined-benefit pension plans adoption by thousands of additional European listed may choose one of three methods to account for the companies.
    [Show full text]
  • The New IAS 19 Exposure Draft”, OECD Working Papers on Finance, Insurance and Private Pensions, No
    Please cite this paper as: Severinson, C. (2010), “The New IAS 19 Exposure Draft”, OECD Working Papers on Finance, Insurance and Private Pensions, No. 5, OECD Publishing. doi: 10.1787/5km7rq4hlw5g-en OECD Working Papers on Finance, Insurance and Private Pensions No. 5 The New IAS 19 Exposure Draft Clara Severinson* JEL Classification: G23, G32, M41, M52 *OECD, France THE NEW IAS 19 EXPOSURE DRAFT Clara Severinson September 2010 OECD WORKING PAPER ON FINANCE, INSURANCE AND PRIVATE PENSIONS No. 5 ——————————————————————————————————————— Financial Affairs Division, Directorate for Financial and Enterprise Affairs Organisation for Economic Co-operation and Development 2 Rue André Pascal, Paris 75116, France www.oecd.org/daf/fin/wp ABSTRACT/RÉSUMÉ The New IAS 19 Exposure Draft At the end of April 2010, the International Accounting Standards Board (IASB) published an exposure draft with proposed changes to International Accounting Standard No. 19 (IAS 19). IAS 19 is the current standard for the financial reporting of company pension obligations that stem from defined benefit (DB) and similar plans. It is required for exchange-listed companies in many parts of the world. If enacted, the changes to IAS 19 proposed by the IASB are expected to have a significant impact on company financials on a global basis. The following paper summarizes the proposed changes as presented in the April 2010 exposure draft and explores some of their implications. This paper does not cover all the changes proposed by the IASB but attempts to focus on some key and
    [Show full text]