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15/05/2019 - Discussion Paper – Accounting for Pension Plans with an Asset-Return Promise

This Discussion Paper​ explores alternative accounting treatments for post-retirement employee benefits, promising the higher of the return on an identified item or group of items and a minimum guaranteed return.
Comments on the DP are requested by 15 November 2019.​



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​The Discussion Paper explores alternative accounting treatments for post-retirement employee benefits (pension plans) promising the higher of the return on an identified item or group of items and a minimum guaranteed return (referred to as an ‘asset-return promise’).
The scope of the Discussion Paper addresses pension plans that hold the identified assets.
 
The Discussion Paper considers the following three alternatives for accounting for the plans in the scope of the project:
a) A Capped Asset Return approach;
b) A Fair-Value Based approach; and
c) A Fulfilment Value approach.
 
The Discussion Paper is available here.