05/11/2015 - EFRAG's comment letter on the IASB's Exposure Draft ED/2015/5 Remeasurement on a Plan Amendment, Curtailment or Settlement / Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14)
EFRAG issues its comment letter on the IASB's Exposure Draft ED/2015/5 Remeasurement on a Plan Amendment, Curtailment or Settlement / Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14).
On 18 June 2015, the IASB issued the Exposure Draft ED/2015/5 Remeasurement on a Plan Amendment, Curtailment or Settlement / Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14) ('the ED').
The proposals in the ED are designed to clarify:
- that when a defined benefit plan is amended, curtailed or settled during a reporting period, the entity is required to use the updated assumptions about its obligation and fair value of its plan assets to determine current service cost and net interest for the period followed by these changes; and
- how the powers of other parties, such as the Trustees of the plan, affect an entity's right to a refund of a surplus from the plan.
EFRAG, in its comment letter, supports the above IASB's proposals. Based on the cost-benefit trade-off, EFRAG also supports the proposed modified retrospective application.
The final comment letter is available here:
