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Current stage

The Board is gathering evidence to help decide whether to develop proposals to make a narrow-scope amendment to IAS 19 Employee Benefits for pension benefits that depend on asset returns.

To gather evidence for the research project, the Board is planning to:

  • explore how a ‘capped’ ultimate cost adjustment model would apply with the use of illustrative examples; and
  • assess the use of pension benefits that depend, wholly or partly, on the return on a specified pool of assets.

IASB® Update December 2020

The Board met on 16 December 2020 to discuss illustrative examples of applying the capped approach to pension benefits that vary with asset returns. The approach would cap the projection of the cash flows that vary with asset returns at the discount rate specified in IAS 19 Employee Benefits. The Board discussed how the capped approach would affect the outcome of applying the requirements in IAS 19.

Educational session—illustrative examples

The Board considered illustrative examples to compare the accounting outcome under the capped approach with the accounting outcome of applying the requirements in IAS 19.

The Board was not asked to make any decisions.

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