Caught exception: Function "area" is already registered.
14. November 2019
Today, the ASCG has issued its comment letter on EFRAG’s discussion paper Accounting for Pension Plans with an Assets-Return Promise.
In the discussion paper EFRAG discussed three alternative accounting methods. Under the presumption that no fundamental revision of IAS 19 is intended, the ASCG prefers the Capped Asset Return approach to both the Fair Value-based approach and the Fulfilment Value Approach.
In addition, the ASCG proposes to develop further the Capped Asset Return approach towards a Fixed Asset Return approach.
Also, the ASCG doubts the suitability of an alternative accounting method based on the IAS 19 model for all hybrid pension plans. Any further consideration and treatment of these plans on a case-by-case basis was rejected, either.
From the ASCG’s point of view the development of any consistent solution would require a fundamental revision of IAS 19.