IAS 19 Proposals to Increase The Reported Cost of Pensions

The International Accounting Standards Board (IASB) exposure draft of changes to the accounting standard IAS 19 attempts to increase the consistency of pensions accounting between companies. The changes are the outcome of IASB’s scaled-back ‘phase 1’ review which is intended to improve the consistency in how the standard is applied. Many companies reporting under IAS 19 could see an increase in both the annual pensions cost recognised in profit and loss and the pension liability shown on the balance sheet.

Towers Watson /IAS