In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) have issued an amendment to IAS 19, Employee Benefits.
The changes to IAS 19 will affect entities differently, depending on the nature of their plans and current accounting policies, but would often result in some or all of the following:
- Lower net income
- Less volatility in net income
- Higher balance sheet liability or lower balance sheet asset for retirement benefits
- Greater volatility in the balance sheet asset or liability
- More onerous disclosure requirements.
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