Accounting Standard AASB 119 Employee Benefits IAS 19 Taskforce

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(No Transcript)
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Accounting Standard AASB 119 Employee
BenefitsIAS 19 Taskforce
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This Presentation

• Background to AASB 119
• Main details of AASB 119
• Background to taskforce
• Discussion of relevant issues
• Example of disclosures

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Background to AASB 119

• July 2002 FRC announces intention to adopt
  international standards
• June 2003 AASB issues ED 115, requests comments
• March 2004 pending standard AASB 119 issued
• July 2004 final standard issued

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Main details of AASB 119

• Governs accounting for employee benefits
  (replacing AASB 1028)
• Applies to reporting periods commencing on or
  after 1 January 2005
• Applies to private and public sector entities
• Main difference to IAS 19 is immediate
  recognition of gains and losses
• Discount rate based on government bond yield must
  be used

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IAS 19 Taskforce

• June 2003 created by IAAust
• July 2003 established ongoing dialogue with
  AASB by inviting AASB project manager to join
  taskforce
• August 2003 submission to AASB on ED115
• February 2004 presentation to AASB
• March 2004 presentations to actuaries, document
  on allowance for tax
• June 2004 discussion paper on relevant issues
  for actuaries
• July 2004 submission to AASB and IASB on
  proposed changes to IAS 19
• August 2004 session at Financial Services Forum

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Discussion topics

• Discount rates and other assumptions
• Allowance for investment and contributions tax
• Valuation updates
• Multi-employer funds
• On-costs
• Vested benefit minimum on DBO

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Discussion topics (cont.)

• Materiality
• Disclosure of funding arrangements
• Consistency with FAS87, FRS17, etc
• Where to from here?
• Other issues

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Example of disclosure
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Example of disclosure (cont.)
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Example of disclosure (cont.)