Global Standards for the world economy

Tuesday 18 December 2018

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IAS 19 Employee Benefits—Discount rate in a country that has adopted another country’s currency


 Work in progress—Tentative agenda decision

IAS 19 Employee Benefits—Discount rate in a country that has adopted another country’s currency

The Committee received a request to clarify how an entity determines the rate used to discount post-employment benefit obligations (discount rate) in a country (Ecuador) that has adopted another currency as its official or legal currency (the US dollar). The entity’s post-employment benefit obligation is denominated in US dollars. The submitter says there is no deep market for high quality corporate bonds denominated in US dollars in the country in which the entity operates (Ecuador).