Employee Benefits (limited scope project)

The objective is to issue a revised IPSAS 25, Employee Benefits which would be converged with the underlying IAS 19, Employee Benefits. The intermediate objective is to produce an Exposure Draft of proposed changes.

Background

IPSAS 25, Employee Benefits was issued in February 2008 and is drawn primarily from IAS 19 (2004), Employee Benefits.

Since then, IAS 19 was amended in June 2011 and November 2013. Other IASs/IFRSs have made minor consequential amendments to IAS 19 including Annual Improvements to IFRSs 2012/2014 Cycle (issued in September 2014).

Issues that the project needs to take in consideration (but are not necessarily limited to):

• Recognition of changes in the net defined benefit liability (asset);
• Plan amendments, curtailments and settlements;
• Disclosures;
• Accounting for termination benefits;
• Classification of short-term employee benefits;
• Current estimates of mortality rates;
• Tax and administration costs;
• Shared risk plans (including revisions in 2011 and 2013 and IASB research project); and
• Composite Social Security Programs.

 The Process for Reviewing and Modifying IASB Documents will guide the convergence with IAS 19.

Government Finance Statistics reporting guidelines is also considered in the project. The Process for Considering GFS Reporting Guidelines during Development of IPSASs (2014) will guide the approach to Government Finance Statistics reporting guidelines.