The Exposure Draft ED/2013/11 Annual Improvements to IFRSs 2012–2014 Cycle published in December 2013 (the ED) includes a proposal for an amendment to IAS 19 Employee Benefits to clarify that the depth of the market for HQCB should be assessed at the currency level.
The issue arose because some think that the assessment of whether there is a deep market in high quality corporate bonds, and the bonds to be included in determining market yields on such bonds, should be made at a country level and not at a currency zone level. Paragraph 83 of IAS 19 states that in countries where there is no deep market in such bonds, the market yields (at the end of the reporting period) on government bonds shall be used.
In May 2014, the Interpretations Committee considered the comment received on the ED and recommended that the IASB should finalise the proposed amendment to paragraph 83 of IAS 19 as exposed.
At its June 2014 meeting, the IASB tentatively decided to finalise the proposed amendment to IAS 19.
At its July 2014 meeting the IASB agreed that all the required due process steps have been complied with