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Employee Benefits – IAS 19 

Amendments eliminate corridor approach

 

In June 2011, the IASB published an amended version of IAS 19, Employee Benefits.

The amended standard

 

  • Eliminates the corridor method for deferring actuarial gains and losses. Instead, actuarial gains and losses must be recognized immediately in comprehensive income.
  • Introduces a new approach for calculating and presenting net interest expense (income) based on the discount rate used to measure the defined benefit obligation.
  • Eliminates recognition of expected gains or losses on plan assets in profit or loss.
  • Introduces changes to termination benefit accounting and other short-term and long-term benefits.

 

Effective date

 

The amended standard applies retrospectively for annual periods beginning on or after January 1, 2013.

 

Please contact your KPMG Accounting Advisory Services adviser for more information.

Todd M. Buchanan

Todd M. Buchanan

Partner, National Leader of Accounting Advisory Services

416-777-8847

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