HKAS 19 was amended in 2011 and became effective on 1 January 2013. Most companies have prepared their financial statements under the amended standard by now.

The median Annual P&L Expense has increased significantly from 5.3% of annual salary last year to this year’s 17.5% of annual salary.

In addition, the balance sheet position has also been affected. Expressing as a multiple of monthly salary, the median has changed from a surplus of 1.1 times monthly salary in 2012 to a deficit of 0.5 times monthly salary in 2013. The contributing factors to the change in the balance sheet position include:

  • Amendment of HKAS 19 on the recognition of actuarial gains and losses
  • Overall asset returns over last year have been higher than the discount rate at the last HKAS 19 valuation
  • A higher discount rate has led to a lower total liability.

Please take a look at our 2013/2014 HKAS 19 assumption survey to find out more.

Further Discussion

If you have any questions, please contact your Towers Watson consultant or Elaine Hwang for more details:


Towers Watson Media

Ms. Elaine Hwang
Director, Benefits Hong Kong
Tel: 852 2820-9923