D9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions

These are employee benefit plans with benefits that depend on future returns on assets. Such plans are defined benefit plans under International Accounting Standard 19 Employee Benefits but the traditional method of accounting for defined benefit plans that is required by that Standard is difficult to apply. D9 proposes that no estimate should be made of the amount that will ultimately be payable for benefits that depend on future returns on assets, because of the difficulty in estimating what asset returns in the future will be. Instead, the measurement of the liability for such benefits should be based on the value of the assets at the balance sheet date.

The comment period closed on 21 September 2004.