4)Revision to IAS 19 “Employee Benefits”
Revision in 2011
Revised IAS 19 requires the recognition of changes in defined benefit obligations and in the fair value of
plan assets when they occur, and hence eliminate the “corridor approach” permitted under current IAS 19
and accelerate the recognition of past service costs. The revision requires all actuarial gains and losses to be
recognized immediately through other comprehensive income in order for the net pension asset or liability to
reflect the full value of the plan deficit or surplus. Furthermore, the interest cost and expected return on plan
assets used in current IAS 19 are replaced with a “net interest” amount, which is calculated by applying the
discount rate to the net defined benefit liability or asset.
In addition, revised IAS 19 changes the definition of short-term employee benefits. The revised definition
is “employee benefits (other than termination benefits) that are expected to be settled wholly before twelve
months after the end of the annual reporting period in which the employees render the related service”. The
Corporation’s unused annual leave, which can be carried forward within 24 months after the end of the annual
period in which the employee renders service and which is currently classified as short-term employee benefits,
will be classified as other long-term employee benefits under revised IAS 19. Related defined benefit obligation
of such other long-term benefit is calculated using the Projected Unit Credit Method. However, this change
does not affect unused annual leave to be presented as a current liability in the balance sheet.
Amendment in 2013
Amended IAS 19 states that contributions from employees or third parties affect remeasurements of the net
defined benefit liability (asset) if they are not linked to service. If the contributions are linked to service, those
contributions could be recognized as a reduction of service cost in which they are payable when they are linked
solely to the employees’ service rendered in that period. If the contribution is dependent on the number of
years of service, an entity is required to attribute those contributions to periods of service.
5)Amendment to IAS 36 “Recoverable Amount Disclosures for Non-financial Assets”
In issuing IFRS 13 “Fair Value Measurement”, the IASB made consequential amendment to the disclosure
requirements in IAS 36 “Impairment of Assets”, introducing a requirement to disclose in every reporting period
the recoverable amount of an asset or each cash-generating unit. The amendment clarifies that such disclosure
of recoverable amounts is required only when an impairment loss has been recognized or reversed during the
period. Furthermore, the Corporation is required to disclose the discount rate used in measurements of the
recoverable amount based on fair value less costs of disposal measured using a present value technique.
6)Annual Improvements to IFRSs: 2010-2012 Cycle
Several standards including IFRS 24 “Disclosure related party” was amended in this annual improvement.
IAS 24 was amended to clarify that a management entity providing key management personnel services to
the Corporation is a related party of the Corporation. Consequently, the Corporation is required to disclose as
related party transactions the amounts incurred for the service paid or payable to the management entity for the
provision of key management personnel services. However, disclosure of the components of such compensation
is not required.
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