| 28.15 | An entity shall measure the net defined benefit liability for its obligations under defined benefit plans at the net total of the following amounts: |
| (a) | the present value of its obligations under defined benefit plans (its defined benefit obligation) at the reporting date (paragraphs 28.16 to 28.21A provide guidance for measuring this obligation); minus |
| (b) | the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled. The Appendix to Section 2 Concepts and Pervasive Principles provides guidance on determining the fair values of those plan assets, except that, if the asset is an insurance policy that exactly matches the amount and timing of some or all of the benefits payable under the plan, the fair value of the asset is deemed to be the present value of the related obligation. [AMD 505] |
| 28.15A | Where an entity has measured its defined benefit obligation using the projected unit credit method (including the use of appropriate actuarial assumptions), as set out in paragraph 28.18, it shall not recognise any additional liabilities to reflect differences between these assumptions and those used for the most recent actuarial valuation of the plan for funding purposes. For the avoidance of doubt, no additional liabilities shall be recognised in respect of an agreement with the defined benefit plan to fund a deficit (such as a schedule of contributions). [AMD 48] |
| AMD 505 Amendment Paragraph 28.15(b) amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017) Effective date 01/01/2019 Previous text (b) the fair value at the reporting date of plan assets (if any) out of which the obligations are to be settled. Paragraphs 11.27 to 11.32 establish requirements for determining the fair values of those plan assets, except that, if the asset is an insurance policy that exactly matches the amount and timing of some or all of the benefits payable under the plan, the fair value of the asset is deemed to be the present value of the related obligation. |
| AMD 48 Amendment Paragraph 28.15A added by Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland - Pension obligations (issued February 2015) Effective date 01/01/2015 |
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