In June 2011, the IASB issued an amended version of IAS 19 Employee Benefits. The IASB’s Amendments focus on the immediate recognition of all changes in the net liability or asset (elimination of the ‘corridor approach’ and elimination of options in the presentation of actuarial gains and losses), the disaggregation and presentation of defined benefit cost components, redefining the components of defined benefit cost, the treatment of plan amendments, curtailments and settlements, termination benefits and improvements in disclosures.

EFRAG has issued its Endorsement Advice Letter and Effects Study Report relating to the endorsement of the Amendments for use in the European Union and European Economic Area. EFRAG supports the Amendments and has concluded that they meet the requirements of endorsement. EFRAG has also concluded that the benefits of the Amendments outweigh the costs.

The Endorsement Advice Letter can be downloaded below and the Effects Study Report can be found here.