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28/05/2018 - EFRAG’s endorsement advice on amendments to IAS 19

​EFRAG has completed its due process regarding Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) and has submitted its Endorseme​​nt Advice Letter to the European Commission.

In February 2018, the IASB issued Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) ('the Amendments'), which were initially included in the exposure draft 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), issued in June 2015.  

The Amendments, effective for annual periods beginning on or after 1 January 2019, require that, when an entity remeasures its net benefit liability (asset) after a plan amendment, curtailment or settlement, it uses the updated actuarial assumptions to determine current service cost and net interest for the remainder of the annual reporting period.

EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation is explained in the letter to the European Commission and the accompanying appendices.

The Endorsement Advice Letter to the European Commission can be found here.

EFRAG has also updated its Endorsement Status Report, which can be downloaded here on EFRAG's web page.