IASB February 2008

The Board discussed some sweep issues on the measurement of the liability for contribution-based promises arising from the review of a draft of the Discussion Paper on Amendments to IAS 19. The Board decided to describe the measurement attribute for contribution-based promises as fair value assuming the terms of the benefit promise do not change. This measure would:

• include credit risk; and
• exclude the possibility that the entity might reduce the terms of the benefits for past service.

The Board noted that the European Financial Reporting Advisory Group and the United Kingdom Accounting Standards Board recently published a discussion paper The Financial Reporting of Pensions. The Board will invite constituents to comment on whether there any issues addressed in that discussion paper that the IASB should address in its project.