IAS 19 - Employee Benefits requires a company to remeasure its net defined benefit liability or asset following a change to a plan (be it an amendment, curtailment or settlement).
The amendments issued by the IASB require a company to use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. Until now, IAS 19 did not specify how to determine these expenses for the period after the change to the plan. By requiring the use of updated assumptions, the amendments are expected to provide useful information to users of financial statements.
The amendments are effective on or after 1 January 2019.
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