25 March 2013
The International Accounting Standards Board (IASB) today published for
public comment an Exposure Draft of proposed amendments to IAS 19 Employee
Benefits.
The IASB is responding to concerns that were raised about
the complexity of applying certain requirements of IAS 19. Specifically
the concerns related to the accounting for contributions from employees and
third parties to defined benefit plans. The objective of the proposed
amendments is to provide a more straight-forward alternative for this accounting
when the contributions payable in a particular period are linked solely to the
employee´s service rendered in that period. The proposed guidance would be
applicable, for example, to accounting for employee contributions that are
calculated according to a fixed percentage of salary.
The issue
originated from a submission to the IFRS Interpretations Committee, which
recommended that the IASB amend the Standard.
The Exposure Draft can be
accessed via the project website or on the ‘Comment
on a proposal´ page on http://www.ifrs.org/. The IASB requests
comments to these proposals by 25 July 2013.