International Accounting Standard 19

Defined benefit (DB) pension and other postemployment benefit (OPEB) plan sponsors subject to International Financial Reporting Standards (IFRS) should review the amended accounting and disclosure rules of International Accounting Standard 19 – Employee Benefits (IAS 19), released on June 16. IAS 19 modifies how a plan’s obligations and risks will be reflected on a company’s financial statements, and requires additional footnote disclosures. The requirements are effective for fiscal years beginning on or after Jan. 1, 2013, but can be adopted earlier.

This Client Action Bulletin focuses mainly on the issues raised by IAS 19 that are associated with single-employer defined benefit pension and OPEB plans. Sponsors of multiemployer defined benefit pension plans that are required to report under IAS 19 are encouraged to review more thoroughly modified disclosure requirements (examples in the table below) which will differ from disclosure rules expected to be issued by the Financial Accounting Standards Board (FASB).