Narrow scope amendments to employee benefits - IAS 19

The International Accounting Standards Board (IASB) has issued amendments to IAS 19. These specify how companies should determine pension expenses for the accounting period when changes to a defined benefit pension plan occur.

When there is a change to a defined benefit plan, IAS 19 requires a company to remeasure its net defined benefit liability or asset. The amendments require a company to use the updated assumptions used in this remeasurement:

  • to determine current and past service cost;
  • to determine settlement gains and losses for the remainder of the reporting period; and
  • to measure net interest from the date of change on the remeasured plan assets.

The amendments are effective on or after 1 January 2019. 

The FRC has provided some general help with pension disclosures in IAS 19.

For further assistance, please speak to your usual RSM contact or visit our IFRS pages.