Global Standards for the world economy

Wednesday 19 December 2018

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Should an entity assume continuation of a minimum funding requirement for contributions relating to future service?


 Agenda decision

IFRIC 14—IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding requirements and their interaction—Should an entity assume continuation of a minimum funding requirement for contributions relating to future service?

The Interpretations Committee received a request to clarify whether the future minimum funding requirement for contributions to cover future service would apply for only the fixed period, that had been agreed between the entity and the pension trustees. The conclusion on this issue could affect how the economic benefit available as a reduction in future contributions is determined, which could in turn affect the amount of the net defined benefit liability or asset to be recognised in the entity’s statement of financial position.

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