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Financial Reporting Standard 119


Contents

paragraphs
INTRODUCTION IN1-IN12


FINANCIAL REPORTING STANDARD 119
EMPLOYEE BENEFITS


OBJECTIVE
SCOPE 1-6
DEFINITIONS 7
SHORT-TERM EMPLOYEE BENEFITS 8-23
Recognition and Measurement 10-22
All short-term employee benefits 10
Short-term compensated absences 11-16
Profit-sharing and bonus plans 17-22
Disclosure 23
POST-EMPLOYMENT BENEFITS: DISTINCTION BETWEEN DEFINED CONTRIBUTION PLANS AND DEFINED BENEFIT PLANS 24-42
Multi-employer plans 29-33
Defined benefit plans that share risks between various entities under common control 34-34B
State plans 36-38
Insured benefits 39-42
POST-EMPLOYMENT BENEFITS: DEFINED CONTRIBUTION PLANS 43-47
Recognition and measurement 44-45
Disclosure 46-47
POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS 48-125
Recognition and measurement 49-62
Accounting for the constructive obligation 52-53
Balance sheet 54-60
Profit or loss 61-62
Recognition and measurement: present value of defined benefit obligations and current service cost 63-101
Actuarial valuation method 64-66
Attributing benefit to periods of service 67-71
Actuarial assumptions 72-77
Actuarial assumptions: discount rate 78-82
Actuarial assumptions: salaries, benefits and medical costs 83-91
Actuarial gains and losses 92-95
Past service cost 96-101
Recognition and measurement: plan assets 102-107
Fair value of plan assets 102-104
Reimbursements 104A-104D
Return on plan assets 105-107
Business combinations 108
Curtailments and settlements 109-115
Presentation 116-119
Offset 116-117
Current / non-current distinction 118
Financial components of post-employment benefit costs 119
Disclosure 120-125
OTHER LONG-TERM EMPLOYEE BENEFITS 126-131
Recognition and measurement 128-130
Disclosure 131
TERMINATION BENEFITS 132-143
Recognition 133-138
Measurement 139-140
Disclosure 141-143
TRANSITIONAL PROVISIONS 153-156
EFFECTIVE DATE 157-160
APPENDICES
A Illustrative example
B Illustrative disclosures
C Illustration of the application of paragraph 58A
AMENDMENT TO OTHER FRSs

Style

Additions to IFRSs are clearly identified and would be made in a manner that preserves the format and structure of the IFRSs.

If a new paragraph is added, that paragraph would be labelled with the preceding paragraph number followed by a capitalised alphabet and the word "added" is included at the right side of the paragraph. If a paragraph is deleted, the text would be marked as deleted text by the inclusion of the word "deleted" at the right side of the paragraph and the reason for the deletion is explained at the end of the paragraph. [New paragraph or deleted paragraph without the indication of "added" or "deleted" at the right side of the paragraph is amendments made by the IASB.]

Additions or deletions made within the paragraph in IFRSs would be shaded and underlined or struck through respectively. [Those additions and deletions which are underlined or struck through without shading are amendments made by the IASB.]

Financial Reporting Standard 119 Employee Benefits (FRS 119) is set out in paragraphs 1-160. All the paragraphs have equal authority. FRS 119 should be read in the context of its objective and the Basis for Conclusions, the Foreword to Financial Reporting Standards and the Proposed Framework for the Preparation and Presentation of Financial Statements. FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.

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