Employment benefits (Amendments)

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2 Minutes on Employee Benefits with Sean Cable

The IASB has issued an amendment to IAS 19, ‘Employee benefits’, which makes significant changes to the recognition and measurement of defined benefit pension expense and termination benefits, and to the disclosures for all employee benefits. These changes will affect most entities that apply IAS 19 and could significantly change a number of performance indicators including EBITDA, EPS and balance sheet ratios.

Key changes relate to the: recognition of actuarial gains and losses, recognition of past service costs / curtailment, measurement of pension expense, income statement presentation, distinction between sort-term and other long-term benefits, treatment of expenses and taxes relating to employee benefit plans, termination benefits, risk or cost sharing features and disclosures.

The amended standard is effective for years beginning on or after January 1, 2013. Click here to learn more about this project and how it may impact your organization’s reporting, or contact us.