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April 29, 2010 at 08:00 PM
The International Accounting Standards Board wants employers to move quickly to report changes in the value of defined benefit pension plan assets and the estimated value of benefits obligations.
IASB, London, has incorporated those goals in an exposure draft of proposed amendments to International Accounting Standard 19 Employee Benefits.
The proposed standards could affect defined benefit post-retirement health insurance programs as well as pension plans, IASB officials report.
Users of current IASB standards can “smooth over” changes from year to year. Advocates of smoothing say it helps employers adjust for short-term market fluctuations; critics say smoothing lets employers create an unrealistically rosy picture of defined-benefit plans’ performance.
The draft amendments would require entities using the standard to:
- Account immediately for all estimated changes in the cost of providing these benefits and all changes in the value of plan assets.
