IASB clarifies prepayments for pension plans

The International Accounting Standards Board (IASB) has put forward proposals for amendments to IFRIC 14IAS 19, which deals with prepayments for pension plans.

The changes are aimed at correcting an unintended consequence of IFRIC 14, which resulted in entities in some circumstances not being permitted to recognise as an asset some prepayments for minimum funding contributions.

The exposure draft, entitled Prepayments of a Minimum Funding Requirement, is open for comment until 27 July 2009.

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