In particular, the new Standard requires greatly improved disclosures for defined benefit pension plans and other post-employment benefit plans, including analyses of the amounts recognised in the balance sheet and income statement, a reconciliation of movements in the balance sheet amounts and a summary of the main actuarial assumptions. Thus, the discount rate is based on market yields at the balance sheet date. The Standard also permits systematic methods of faster recognition, provided that the same basis is applied to both gains and losses and the basis is applied consistently from period to period. If the adoption of the standard decreases the liability, an enterprise is required to recognise the decrease immediately. The Standard is effective for accounting periods beginning on or after 1 January 1999.
Earlier application is encouraged.
The Standard replaces IAS 19, Retirement Benefit Costs, which was approved in 1993.