EFRAG comments on the IASB’s Exposure Draft of amendments to IAS 19 discount rate for employee benefits.
08 September 2009
Efrag believes that entities need guidance to help them estimate market yields rather than individual bond yields.
EFRAG supports the proposal in the ED eliminating the requirement to use the government bond rate when there is no deep market in high-quality corporate bonds.
EFRAG has concerns about the applicability of the IAS 39 guidance. It is proposed that IAS 19 should refer entities to when they are estimating the yield on high-quality corporate bonds. In EFRAG's view, entities need guidance to help them estimate market yields rather than individual bond yields.
EFRAG does not agree that the amendment should be treated as a change in accounting policy. In EFRAG's view it is a change in accounting estimate and, similar to other changes in discount rates, the effect of the change should be recognised as an actuarial gain or loss.
Deadline for comments is on 29 September 2009
© EFRAG - European Financial Reporting Advisory Group
