Public Benefit Entities – Employee Benefits standard issued

We have issued a standard that applies to Tier 1 and Tier 2 public benefit entities (PBEs)—both not-for-profit and public sector entities.

PBE IPSAS 39 Employee Benefits

This standard is based on IPSAS 39 Employee Benefits which was issued by the International Public Sector Accounting Standards Board (IPSASB) in July 2016.

IPSAS 39 was the result of a limited scope project to maintain convergence between the employee benefit requirements in IPSASs and IAS 19 Employee Benefits (as amended in 2011).

PBE IPSAS 39 aligns the requirements for employee benefits in PBE Standards with those in IPSAS 39. It supersedes PBE IPSAS 25 Employee Benefits.

PBE IPSAS 39:

  1. removes the option to defer the recognition of certain actuarial gains and losses arising from defined benefit plans (the “corridor approach”);
  2. eliminates some of the presentation options for actuarial gains and losses arising from defined benefit plans (which enhances comparability);
  3. introduces the net interest approach, which is to be used when determining the defined benefit cost for defined benefit plans; and
  4. structures the disclosures for defined benefit plans according to explicit disclosure objectives for defined benefit plans.

The amendments are effective for annual financial statements covering periods beginning on or after 1 January 2019 with early application permitted.

The standard below is an identical standard for both not-for-profit and public sector entities.

> PBE IPSAS 39 Employee Benefits