During meetings in July 2009, the International Accounting Standards Board (IASB) agreed to further develop a proposal that would give companies the option to use high-quality corporate bond-based discount rates to calculate pension accounting liabilities under IAS19 in all countries, including those where the corporate bond market is currently not considered to be deep. This development is of particular interest to companies that sponsor pension plans in Asia, Africa, Latin and South America, as well as some European countries (such as Switzerland, Sweden and Norway).
The IASB expects to fast-track this proposal through their usual consultation process and issue an exposure draft in late August, with a 30-day comment period. The IASB then expects to review the comments and vote on the final changes in October so that the change will be effective for fiscal years coinciding with the 2009 calendar year-end.
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