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IFRIC 14 Amendments - Availability of a refund from a defined benefit plan


In March 2014, the IFRS Interp​​retations Committee (IFRS IC) received a request to clarify the guidance of IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The request related to availability of a refund of a surplus from a defined benefit plan when an independent trustee has unilateral power to use a plan surplus.

On 18 June 2015, the IASB published Exposure Draft Remeasurement on a Plan Amendment, Curtailment or Settlement/Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14) (the ED) which addressed the issue. 

The IFRIC 14 amendments proposed to clarify 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.

On 24 July 2015, EFRAG published its draft comment letter on the ED. In the draft comment letter, EFRAG supported the proposals, however, EFRAG sought input from constituents on any impediments in regard to the limited retrospective application.

EFRAG finalised and published its comment letter on 6 November 2015. In the final comment letter, EFRAG maintained its initial position to support the ED. On 24 November 2015, EFRAG published its feedback to constituents.

In September 2017, the IASB tentatively decided to finalise the amendments to IAS 19 separately from the amendments to IFRIC 14 and plans to perform further work on the possible effects of t​he IFRIC 14 amendments.

The project page for the IAS 19 amendments can be found here.

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