Annex 1.app 1 - Annex 1.app_1

A1

Paragraph 39L is added as follows: 39L IAS 19 Employee Benefits (as amended in June 2011) amended paragraph D1, deleted paragraphs D10 and D11 and added paragraph E5. An entity shall apply those amendments when it applies IAS 19 (as amended in June 2011).

A2

In Appendix D (Exemptions from other IFRSs), the heading above paragraph D10 and paragraphs D10 and D11 are deleted and paragraph D1 is amended as follows: D1 An entity may elect to use one or more of the following exemptions: (a) ... (e) [deleted] ...

A3

In Appendix E (Short-term exemptions from IFRSs), a heading and paragraph E5 are added as follows: Employee benefits E5 A first-time adopter may apply the transition provisions in paragraph 173(b) of IAS 19.

A4

Paragraph 24 is amended as follows: 24 An entity shall disclose the following about each reportable segment if the specified amounts are included in the measure of segment assets reviewed by the chief operating decision maker or are otherwise regularly provided to the chief operating decision maker, even if not included in the measure of segment assets: (a) ... (b) the amounts of additions to non-current assets* other than financial instruments, deferred tax assets, net defined benefit assets (see IAS 19 Employee Benefits) and rights arising under insurance contracts. [footnote omitted]

A5

The heading above paragraph D61 is amended to read as follows:

A6

Paragraphs D62 and D63 are amended as follows: D62 Paragraph 113 is amended as follows: 50 [deleted] (c) [deleted] 102 113 The fair value of any plan assets is deducted in determining the deficit or surplus. D63 Paragraph 174 is added as follows: 162 174 IFRS 13, issued in May 2011, amended the definition of fair value in paragraph 8 and amended paragraph 113. An entity shall apply those amendments when it applies IFRS 13.

A7

In paragraph 7, the definition of ‘other comprehensive income’ is amended as follows: 7 ... Other comprehensive income comprises items of income and expense (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by other IFRSs. The components of other comprehensive income include: (a) changes in revaluation surplus (see IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets); (b) remeasurements of defined benefit plans (see IAS 19 Employee Benefits); (c) ...

A8

Paragraph 96 is amended, and paragraph 139K is added as follows: 96 Reclassification adjustments do not arise on changes in revaluation surplus recognised in accordance with IAS 16 or IAS 38 or on remeasurements of defined benefit plans recognised in accordance with IAS 19. These components are recognised in other comprehensive income and are not reclassified to profit or loss in subsequent periods. Changes in revaluation surplus may be transferred to retained earnings in subsequent periods as the asset is used or when it is derecognised (see IAS 16 and IAS 38). 139K IAS 19 Employee Benefits (as amended in June 2011) amended the definition of ‘other comprehensive income’ in paragraph 7 and paragraph 96. An entity shall apply those amendments when it applies IAS 19 (as amended in June 2011).

A9

Paragraph 22 is amended as follows: 22 Participation by a parent or subsidiary in a defined benefit plan that shares risks between group entities is a transaction between related parties (see paragraph 42 of IAS 19 (as amended in 2011)).

A10

Below the heading ‘References’, after the reference to IAS 19 Employee Benefits is added ‘(as amended in 2011)’. Paragraphs 25 and 26 are deleted, paragraphs 1, 6, 17 and 24 are amended and paragraph 27C is added as follows: 1 Paragraph 64 of IAS 19 limits the measurement of a net defined benefit asset to the lower of the surplus in the defined benefit plan and the asset ceiling. Paragraph 8 of IAS 19 defines the asset ceiling as ‘the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan’. Questions have arisen about when refunds or reductions in future contributions should be regarded as available, particularly when a minimum funding requirement exists. 6 The issues addressed in this Interpretation are: (a) when refunds or reductions in future contributions should be regarded as available in accordance with the definition of the asset ceiling in paragraph 8 of IAS 19. ... 17 An entity shall determine the future service costs using assumptions consistent with those used to determine the defined benefit obligation and with the situation that exists at the end of the reporting period as determined by IAS 19. Therefore, an entity shall assume no change to the benefits to be provided by a plan in the future until the plan is amended and shall assume a stable workforce in the future unless the entity makes a reduction in the number of employees covered by the plan. In the latter case, the assumption about the future workforce shall include the reduction. 24 To the extent that the contributions payable will not be available after they are paid into the plan, the entity shall recognise a liability when the obligation arises. The liability shall reduce the net defined benefit asset or increase the net defined benefit liability so that no gain or loss is expected to result from applying paragraph 64 of IAS 19 when the contributions are paid. 27C IAS 19 (as amended in 2011) amended paragraphs 1, 6, 17 and 24 and deleted paragraphs 25 and 26. An entity shall apply those amendments when it applies IAS 19 (as amended in 2011).