Global Standards for the world economy

Tuesday 02 June 2020

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Work plan for Interpretations

IFRIC 14 IAS 19 - the limit on a defined benefit asset, minimum funding requirements and their Interaction

Amendments to IFRIC 14


In November 2009, the IASB issued amendments to IFRIC 14.

The amendments are aimed at correcting an unintended consequence of IFRIC 14. Read the press release on the  exposure draft and final amendment

  • Read the exposure draft
  • Read the November IFRIC Update for the agenda decision on amendments to IFRIC 14
  • Read the  January 2009 and  October 2009 Updates for the IASB's tentative decision about amendments to IFRIC 14

Scope of IFRIC 14

IFRIC 14 addresses three issues:

  • how entities should determine the limit placed by IAS 19 Employee Benefits on the amount of a surplus in a pension plan they can recognise as an asset
  • how a minimum funding requirement affects that limit and
  • when a minimum funding requirement creates an onerous obligation that should be recognised as a liability in addition to that otherwise recognised under IAS 19.

Reason for IFRIC 14

IAS 19 lacks detailed guidance in this area and practices vary.

Impact of IFRIC 14

  • IFRIC 14 will standardise practice and ensure that entities recognise an asset in relation to a surplus on a consistent basis.
  • In jurisdictions where there is both a strong minimum funding requirement and restrictions over the amounts that entities can recover from the plan, either as refunds or reductions in contribution, entities may have to recognise an additional liability.

Effective date


IFRIC 14 is mandatory for annual periods beginning on or after 1 January 2008. Earlier application is permitted.

The amendment to IFRIC 14 issued in November 2009 is mandatory for annual periods beginning on or after 1 January 2011. Earlier application is permitted.


Project Contact

Manuel Kapsis
Assistant Technical Manager