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MASB has issued an exposure draft on the amendment to employee benefits (15 July 2005)

The Malaysian Accounting Standards Board (MASB) has issued an exposure draft on the amendment to employee benefits which covers the accounting treatment for actuarial gains and losses, group plans and disclosures regarding such benefits. 

The exposure draft, called "MASB ED 49 Amendment to FRS 119 Employee Benefits: Actuarial Gains and Losses, Group Plans and Disclosures", is identical to the amendment to IAS 19 on employee benefits that was issued by the International Accounting Standards Board (IASB) in December 2004.
 
MASB executive director Dr Nordin Mohd Zain says the amendment to IAS 19 introduces an additional recognition option for actuarial gains and losses arising in post-employment defined benefit plans.
 
This option allows an entity to recognise actuarial gains and losses in full in the period in which they occur, outside profit or loss, in a statement of recognised income and expense.

This option is similar to the requirements of the UK standard, FRS 17 Retirement Benefits.
"The amendment also specifies how group entities should account for defined benefit group plans in their separate or individual financial statements and requires entities to give additional disclosures," he says.
 
ED 49 is part of MASB's convergence effort to align its standards to those of the international financial reporting standards (IFRSs). MASB uses IFRSs as the basis for its exposure drafts. The wordings in IFRSs are strictly maintained and would only be changed if it is absolutely necessary. 
 
For enquiries, please contact:
Dr Nordin Mohd Zain
Executive Director
Malaysian Accounting Standards Board
Tel: 03- 2715 9199
Fax: 03-2715 9212
Email: nordin@masb.org.my