Availability of a Refund (Amendments to IFRIC 14)

The International Accounting Standards Board (IASB) initially proposed narrow-scope amendments to IFRIC 14 IAS 19—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction to clarify how an entity assesses its right to a refund of a surplus in a defined benefit plan when other parties (for example, trustees) have particular rights. The IASB decided not to finalise the amendments, having obtained feedback that the benefits of proceeding with the amendment would be limited.

The IASB then considered whether it could develop a more principles-based approach than currently in IFRIC 14 to address the measurement of an entity’s right to a refund of a surplus in a defined benefit plan. The IASB noted that this matter is complex. Consequently, any project to address the matter would require considerable time and effort. The project considered would also address only one aspect of the measurement of defined benefit plans. The IASB therefore concluded that the expected benefits of the project would not outweigh the expected costs.

The IASB decided to withdraw the project from its work plan.