IASB proposes to clarify the accounting for prepayments for

Kedar Pande (Self Employed) (896 Points)

28 May 2009  

The International Accounting Standards Board (IASB) today published for public comment an exposure draft of proposed amendments to IFRIC 14 IAS 19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.

The proposed amendments are aimed at correcting an unintended consequence of IFRIC 14, an interpretation of IAS 19 Employee Benefits . As a result of the interpretation, entities are in some circumstances not permitted to recognise as an asset some prepayments for minimum funding contributions.

This issue was also raised as a concern by many interested parties. The proposals published today respond to those concerns and, if confirmed, would remedy this unintended consequence of IFRIC 14.

The exposure draft Prepayments of a Minimum Funding Requirement is available on the ‘Open for Comment’ section of www.iasb.org and is open for comment until 27 July 2009. Subscribers may also view the document in the eIFRSs Website. Printed copies of the exposure draft (ISBN 978-1-907026-06-5) will be available shortly, at £10.00 plus shipping, from:

IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email:
publications @ iasb.org Web: www.iasb.org