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What is New On IAS 19 (Employee Benefits) Amendment Version



IAS 19 Employee BenefitsThe IASB just issued amended version of IAS 19 (Employee Benefits) after some analysis conducted by IASB, according to press release published by the International Accounting Standard Board. As it has been announced since the beginning, this project aimed to improve accounting for pensions and other post-employment benefits.

The amendment is the result of a MOU between the IASB and the Financial Accounting Standards Board (FASB) to work towards further aligning the standards from the accounting rule makers.


One key phrase on the amendment is the “corridor method” which is believed as it brings the U.S. GAAP closer to those of IASB (IFRS).

Here are some of the major changes (among others) in the amendments:

  • Elimination of an option to defer the recognition of gains and losses, known as the “corridor method,” to improve comparability and faithfulness of presentation.
  • Streamlining of the presentation of changes in assets and liabilities arising from defined benefit plans, including requiring re-measurements to be presented in other comprehensive income, thereby separating those changes from changes that many perceive to be the result of an entity’s day-to-day operations.
  • Enhancement of the 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 IAS 19 (Employee Benefits) Amendment Version  is effective for financial years beginning on or after January 1, 2013.

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