IASB issues narrow-scope amendments to pension accounting

Written on Feb 15, 2018

The International Accounting Standards Board (IASB) has issued narrow-scope amendments to pension accounting.

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) specifies how companies determine pension expenses when changes to a defined benefit pension plan occur. International Accounting Standard (IAS) 19 Employee Benefits specifies how a company accounts for a defined benefit plan. When a change to a plan—an amendment, curtailment or settlement—takes place, IAS 19 requires a company to remeasure its net defined benefit liability or asset. The amendments require a company to 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.

The amendments are effective on or after Jan. 1, 2019.

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