The International Accounting Standards Board
(IASB) has issued an amended version of IAS 19 Employee Benefits to
help improve accounting for pensions and other post employment

The amendments have eliminated an option to
defer the recognition of gains and losses to improve comparability
and faithfulness of presentation.

They also streamline the presentation of
changes in assets and liabilities arising from defined benefit
plans, including requiring re-measurements presented in other
comprehensive income.

The amendments are designed to enhance
disclosure requirements for defined benefit plans, providing better
information about the characteristics of defined benefit plans and
the risks that entities are exposed to through participation in
those plans, the IASB said.

The standard setter expects the changes to
provide users of financial statements with a clearer picture of an
entity’s obligations resulting from the provision of defined
benefit plans and how these obligations will affect its financial
position, performance and cash flow.

“The amendments to IAS 19 will ensure that
investors and other users of financial statements are fully aware
of the extent and financial risks associated with those
commitments, in particular by requiring the surplus or deficit of a
pension fund to be shown in the financial statements,” IASB
chairman David Tweedie said.

IAS 19 was inherited by the IASB when it began
its work in 2001 but was not included in the initial set of
improvements made to achieve a stable platform for IFRS adoption in
Europe and other jurisdictions in 2005.

A project summary and feedback
statement will soon be available on the project page of the
IFRS website.