Pensions accounting developments: IAS19

Our latest corporate briefing looks at the effect of the IASB’s recent changes to IAS19.

• What's changing? The IASB have made several changes to IAS19, most notably removing the concept of expected return on assets and removing the ability to amortise gains and losses. These changes will be effective for fiscal years beginning on and after 1 January 2013. 
• What does this mean? The proposed changes may significantly increase the level and volatility of your IAS19 P&L charge and will also lead to significant balance sheet deterioration for some companies.
• What do I need to do? You should seek to understand the effects of the changes and develop a business plan for addressing the impact.