The International Accounting Standards Board (IASB) has this week published for public comment an exposure draft of proposed amendments to IFRIC 14 IAS 19 -- The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.
The proposed amendments are aimed at correcting an unintended consequence of IFRIC 14, an interpretation of IAS 19 Employee Benefits . As a result of the interpretation, entities are in some circumstances not permitted to recognise as an asset some prepayments for minimum funding contributions.
This issue was also raised as a concern by many interested parties. The proposals published today respond to those concerns and, if confirmed, would remedy this unintended consequence of IFRIC 14.
The exposure draft Prepayments of a Minimum Funding Requirement is open for comment until 27 July 2009.