Changes in IAS 19 Employee Benefits (2011) – new rules for the recognition of benefits paid to employees according to IFRS
On 16 June 2011, the International Accounting Standards Board (IASB) published a revised version of IFRS Standards IAS 19 (2011), which governs the recognition of benefits paid to employees.
Changes from the previous version of IAS 19 (2008) primarily affect the recording of actuarial profits and losses, the itemisation of pension expenses and the explanations that need to be presented in the Notes.
Overview of changes:
For financial years from 1 Jan 2013, all actuarial profits or losses must be recorded in Other Comprehensive Income (separate section). The corridor method has been withdrawn.
If plan assets exist, then the expected income from the assets (i.e. return on assets) must be determined using the same rate as the interest costs.
For 2012, parallel valuation must be performed using the new procedure.