IPSASB Publishes Exposure Draft 59, Amendments to IPSAS 25, Employee Benefits

Jan 13, 2016 | New York, New York | English

The International Public Sector Accounting Standards Board® (IPSASB®) today released for comment Exposure Draft (ED) 59, Amendments to IPSAS 25, Employee Benefits.

A key part of the IPSASB’s strategy to develop high-quality public sector financial reporting standards is to maintain existing IPSASs. IPSAS 25 is based on International Accounting Standard (IAS) 19, Employee Benefits, which has subsequently been revised. The main changes that the IPSASB has proposed to IPSAS™ 25, so that convergence with IAS 19 is maintained to the extent appropriate, are:

  • Remove an option that allows an entity to defer the recognition of changes in the net defined benefit liability (the “corridor approach”);
  • Introduce the net interest approach for defined benefit plans;
  • Amend certain disclosure requirements for defined benefit plans and multi-employer plans; and
  • Simplify the requirements for contributions from employees or third parties to a defined benefit plan when those contributions are applied to a simple contributory plan that is linked to service.

“The proposals in this Exposure Draft aim to ensure that financial statements provide faithfully representative and relevant information about employee benefits, particularly defined benefit plans, while maintaining convergence with IFRS,” said IPSASB Chair Ian Carruthers. “These proposals address changes made to the underlying private sector standard since IPSAS 25 was originally issued. We look forward to hearing whether constituents support the changes to IPSAS 25 proposed in this Exposure Draft or have alternative views.”

To enhance understanding of these proposals, a marked-up version of IPSAS 25 reflecting the changes proposed in ED 59 is made available on the IPSASB website.

How to Comment

To access the ED, the At-a-Glance summary of the ED, and the marked-up version of IPSAS 25 or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the ED are requested by April 30, 2016. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this ED to their members and employees.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

Working at IPSASB
IPSAS™ are rapidly becoming the gold standard of public sector financial reporting, with increasing global adoption and implementation. Working at IPSASB offers the opportunity to contribute to the global accountancy profession and for engagement with leading standard-setters from all over the world. Currently, the IPSASB is seeking self-motivated individuals with strong project management skills and an interest in technical accounting issues. Candidates should possess good interpersonal skills, a background in standard-setting in either or both public and private sectors, or experience in  technical accounting analysis. Visit Working at IFAC or email a resume (CV) and cover letter to jobs@ifac.org

About IFAC®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.


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