IFRIC 14 and IAS 19 Amendment - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

The IFRIC issued a draft Interpretation, IFRIC D19 IAS 19-The Asset Ceiling: Availability of Economic Benefits and Minimum Funding Requirements on 24 August 2006. The final Interpretation, IFRIC 14 IAS19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction was issued during July 2007.

The proposals clarify how to determine, in normal circumstances, the limit on the asset that an employer's balance sheet may contain in respect of its pension plan as well as how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement.