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15 April 2016

FEE responds to IPSASB proposed amendments to IPSAS 25 on employee benefits


FEE submitted its comments on IPSASB's Exposure Draft 59: Amendments to IPSAS 25 Employee Benefits. FEE supports the approach taken in this ED that aligns, as far as possible, IPSAS 25 with IAS19.

FEE supports the proposed removal of the ‘corridor approach’ from IPSAS 25, which will result in all changes in the present value of plan assets being recognised in the period in which they incur. This should help increase consistency in reporting between different public sector entities.

FEE also agrees with the ED in its continued divergence with IAS 19 in respect of determining the rate used to discount the post-employment defined benefit obligations. FEE believes that entities should be permitted to select the most appropriate discount rate based on their asset profile.

Finally, FEE agrees with the proposed amendments to the components of defined benefit cost, albeit FEE regards the recognition of changes in fair value of plan assets through net assets/equity as being a temporary measure until a more fundamental review of the accounting of such fair value adjustments can be completed.

Full comment letter



© FEE


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