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29 April 2013

EFRAG: Draft comment letter on employee contributions


EFRAG published its draft comment letter on the IASB's ED/2013/4 'Defined Benefit Plans: Employee Contributions'. Comments on the letter are invited by 5 July, 2013.

In March 2013, the IASB issued Exposure Draft ED/2013/4 'Defined Benefit Plans: Employee Contributions'.

EFRAG agrees with the IASB’s proposals on the basis that they clarify the existing requirements of IAS 19 (2011) on accounting for contributions from employees or third parties set out in the formal terms of a defined benefit plan, and provide relief to preparers. EFRAG also supports the IASB’s proposal to address the existing inconsistency in IAS 19 (2011) in relation to the attribution of these contributions, as this would reduce potential divergence in practice.

EFRAG specifically asks constituents whether they are aware of any circumstances in which the application of the practical expedient provided by the IASB would result in contributions being inappropriately recognised as reductions in service cost.

Press release

Draft comment letter



© EFRAG - European Financial Reporting Advisory Group


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