IASB makes change to defined benefit contribution accounting

BY KEN TYSIAC

Small-scale changes to financial reporting rules for employee benefit plans were published Thursday by the International Accounting Standards Board (IASB).

Contributions from employees or third parties to defined benefit plans are affected by the amendments to IAS No. 19, Employee Benefits.

The changes were made to simplify the accounting for contributions that are independent of the number of years of employee service. For example, employee contributions that are calculated according to a fixed percentage of salary are affected.

The amendments take effect July 1, 2014, and early application is permitted.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

Where to find February’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

SPONSORED REPORT

Get Clients Ready for Tax Season

This comprehensive report looks at the changes to the child tax credit, earned income tax credit, and child and dependent care credit caused by the expiration of provisions in the American Rescue Plan Act; the ability e-file more returns in the Form 1040 series; automobile mileage deductions; the alternative minimum tax; gift tax exemptions; strategies for accelerating or postponing income and deductions; and retirement and estate planning.