The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRIC Interpretation (IFRIC) 14 IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. This project was combined with proposed amendments to IAS 19 Employee Benefits at the exposure draft stage.
The objective of this project is to improve information to investors and address some diversity in practice related to pension accounting requirements.
The amendments to IFRIC 14 address 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.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB® proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.