PAS 19
Illustrative Disclosures for Revised IAS 19 Employee Benefits
Revisions to IAS 19 Employee Benefits is effective for annual periods beginning on or after
1 January 2013. The following is an illustration of disclosures relating to employee benefits when the standard is adopted for the year ending December 31, 2013.
Extract of summary of significant accounting policies illustrating changes in accounting policies on adoption of Revised IAS 19:
X. Summary of significant accounting policies
X.X Changes in accounting policies
Revised IAS 19 Employee Benefits
On 1 January 2013, the Group adopted the Revised IAS 19 Employee Benefits.
For defined benefit plans, the Revised IAS 19 requires all actuarial gains and losses to be recognized in other comprehensive income and unvested past service costs previously recognized over the average vesting period to be recognized immediately in profit or loss when incurred.
Prior to adoption of the Revised IAS 19, the Group recognized actuarial gains and losses as income or expense when the net cumulative unrecognized gains and losses for each individual plan at the end of the previous period exceeded 10% of the higher of the defined benefit obligation and the fair value of the plan assets and recognized unvested past service costs as an expense on a straight-line basis over the average vesting period until the benefits become vested. Upon adoption of the revised IAS 19, the Group changed its accounting policy to recognize all actuarial gains and losses in other comprehensive income and all past service costs in profit or loss in the period they occur.
The Revised IAS 19 replaced the interest cost and expected return on plan assets with the concept of net interest on defined benefit liability or asset which is calculated by multiplying the net balance sheet defined benefit liability or asset by the discount rate used to measure the employee benefit obligation, each as at the beginning of the annual period.
Revisions to IAS 19 Employee Benefits is effective for annual periods beginning on or after
1 January 2013. The following is an illustration of disclosures relating to employee benefits when the standard is adopted for the year ending December 31, 2013.
Extract of summary of significant accounting policies illustrating changes in accounting policies on adoption of Revised IAS 19:
X. Summary of significant accounting policies
X.X Changes in accounting policies
Revised IAS 19 Employee Benefits
On 1 January 2013, the Group adopted the Revised IAS 19 Employee Benefits.
For defined benefit plans, the Revised IAS 19 requires all actuarial gains and losses to be recognized in other comprehensive income and unvested past service costs previously recognized over the average vesting period to be recognized immediately in profit or loss when incurred.
Prior to adoption of the Revised IAS 19, the Group recognized actuarial gains and losses as income or expense when the net cumulative unrecognized gains and losses for each individual plan at the end of the previous period exceeded 10% of the higher of the defined benefit obligation and the fair value of the plan assets and recognized unvested past service costs as an expense on a straight-line basis over the average vesting period until the benefits become vested. Upon adoption of the revised IAS 19, the Group changed its accounting policy to recognize all actuarial gains and losses in other comprehensive income and all past service costs in profit or loss in the period they occur.
The Revised IAS 19 replaced the interest cost and expected return on plan assets with the concept of net interest on defined benefit liability or asset which is calculated by multiplying the net balance sheet defined benefit liability or asset by the discount rate used to measure the employee benefit obligation, each as at the beginning of the annual period.