IASB ED/2013/4 Defined Benefit Plans: Employee Contributions

The IASB has published, for public comment, proposals for minor amendments to IAS 19 Employee Benefits.

The Exposure Draft is designed to provide a more straight-forward alternative for accounting when the contributions payable in a particular period are linked solely to the employee’s service rendered in that period. It proposes that such contributions may be recognised as a reduction in the service cost in the same period in which they are payable if, and only if, they are linked solely to the employee’s service rendered in that period. An example would be contributions that are a fixed percentage of an employee’s salary, so the percentage of the employee’s salary does not depend on the employee’s number of years of service to the employer.

Comments, both formal and informal, can be made to the New Zealand Accounting Standards Board (NZASB) addressed to the Chief Executive, External Reporting Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to submissions@xrb.govt.nz.

Respondents are also encouraged to send comments directly to the IASB, with a copy to the NZASB. Comments can also be made electronically to the IASB website (www.ifrs.org), using the “Comment on a proposal” page.

It would be appreciated if respondents send their comments in electronic form (PDF and Microsoft Word formats) as it allows for efficient collation and analysis of comments. All comments will ultimately be posted on the XRB website unless respondents indicate that they wish their comments to remain confidential.

Comments are due to the NZASB by 5 July 2013, and to the IASB by 25 July 2013.

Click here for IASB Exposure Draft ED/2013/4

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