IFRIC 14 IAS 19: Limit on Defined Benefit Asset
Published July 2007. Effective 1 January 2008.
Contents
Free to view
- Synopsis (including link to unaccompanied version of IFRIC 14)
- IFRSs referred to
Financial Reporting Faculty members only
How standards trackers work
Corporate Reporting Faculty members get full access.
ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.
Synopsis
IAS 19 limits the measurement of the defined benefit asset to the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.
Minimum funding requirements which stipulate minimum contributions over a given period exist in a number of countries. These may limit the ability of an entity to reduce future contributions.
IFRIC 14 provides guidance on the interaction of the IAS 19 limit and any minimum funding requirements. In particular it addresses:
- How entities should determine the limit placed by IAS 19 on the defined benefit asset
- How a minimum funding requirement affects that limit
- When a minimum funding requirement creates an onerous obligation that should be recognised as a liability in addition to that recognised under IAS 19.
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.
Which version of the interpretation?
Financial Reporting Faculty members who joined the faculty prior to 1 November 2022 have premium access to the consolidated edition of IFRS and amendments through the IASB's IFRS Standards Navigator service. Please log into IFRS Standards Navigator to access electronic versions of the standards through these links.
Please be aware that as part of the changes to ICAEW faculty membership, this service will be withdrawn after 31 December 2022.
IFRSs referred to by IFRIC 14
- IAS 1 Presentation of Financial Statements
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 19 Employee Benefits
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets
This page was last updated 4 February 2022.