Exposure Draft on Defined Benefit Plans: proposed amendments to IAS 19 - (28-06-2010)

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The International Accounting Standards Board (IASB) has issued this Exposure Draft containing the proposals to amend IAS 19 Employee Benefits. The proposals would amend the accounting for defined benefit plans through which some employers provide long-term employee benefits, such as pensions and post-employment medical care. In defined benefit plans, employers bear the risk of increases in costs and of possible poor investment performance. The amendments would address deficiencies in IAS 19 by requiring entities: to account immediately for all estimated changes in the cost of providing these benefits and all changes in the value of plan assets (often referred to as removal of the 'corridor' method); to use a new presentation approach that would clearly distinguish between different components of the cost of these benefits; and to disclose clearer information about the risks arising from defined benefit plans.

Invitation to comments

ASB invites comments on the Exposure Draft from the public. The downloadable version of the draft is available at http://www.iasb.org/NR/rdonlyres/A366AC39-6AE3-4516-A81D-ACFB4A9E5D42/0/EDIAS19DefinedBenefit.pdf. Comments would be most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi-110002, so as to be received not later than July 31, 2010. Comments can also be sent by e-mail at asb@icai.org or edcommentsasb@icai.org.