BN160 - Proposed Changes to IFRIC 14 and the Effect on UK Company Balance Sheets under IAS 19

Briefing Notes posted on 9 October, 2017

The International Accounting Standards Board has been consulting on possible changes to IFRIC 14, which applies to entities accounting for defined benefit pension costs using IAS 19. Specifically, IFRIC 14 deals with the limits on defined benefit assets that can be taken into account on Balance Sheets, allowing for future recovery plan payments to which an employer may be committed, and the interaction between the two. Should the latest proposals be adopted there could be significant effects on UK Company Balance Sheets.

This Briefing Note summarises the proposals and examines their impact.

 

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