IFRIC guidance on the IAS 19 asset ceiling and minimum funding requirements

24 August 2006

IFRIC released for public comment a draft Interpretation “IAS 19—The Asset Ceiling: Availability of Economic Benefits and Minimum Funding Requirements.” The proposals clarify how to determine in normal circumstances the limit on the asset that an employer’s balance sheet may contain in respect of its pension plan as well as how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement.

IFRIC has developed the proposed Interpretation in response to requests to clarify the interaction between statutory or contractual minimum funding requirements and the requirements of the pensions standard, IAS 19 Employee Benefits.

Press release

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