21/10/2019 - Video presentation – EFRAG’s discussion paper: Accounting for Pension Plans with an Asset-return Promise is still open for comments until 15 November
Discover EFRAG’s discussion paper Accounting for Pension Plans with an Asset-return Promise with a brief video prepared by EFRAG’s pension plans team. Comments on the discussion paper are welcome by 15 November.
As Sapna Heeralall, EFRAG Technical Manager, explains in the video below, the discussion paper explores alternative accounting treatments for post-retirement employee benefits (pension plans) promising the higher of the return on plan assets and a minimum guaranteed return (referred to as an ‘asset-return promise’).
The discussion paper addresses pension plans that promises the higher of the return on the plan assets and a minimum guaranteed return.
The discussion paper considers the following three alternatives for accounting for the plans in the scope of the project:
a) a Capped Asset Return approach;
b) a Fair-Value Based approach; and
c) a Fulfilment Value approach.
The discussion paper is available here.