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EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) ('the Amendments').
The Amendments were issued in February 2018. The Amendments require that, when an entity remeasures its net benefit liability (asset) after a plan amendment, curtailment or settlement, it uses the updated actuarial assumptions to determine current service cost and net interest for the remainder of the annual reporting period.
The Amendments become effective for annual periods beginning on or after 1 January 2019, with earlier application permitted.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore EFRAG recommends their endorsement. EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
Comments are requested by 21 April 2018.
Full draft endorsement advice letter