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MASB issues narrow-scope amendments to pension accounting (15 March 2018)

The Malaysian Accounting Standards Board (MASB) has today issued Plan Amendment, Curtailment or Settlement (Amendments to MFRS 119). The amendments to MFRS 119 Employee Benefits are word-for-word Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) issued by the International Accounting Standards Board.

The amendments require an entity to use updated actuarial assumptions to determine current service cost and net interest for the remainder of the annual reporting period after the plan amendment, curtailment or settlement when the entity remeasures its net defined benefit liability (asset). Using updated assumptions provide more useful information to users of financial statements and enhance the understandability of financial statements. Before the amendments, MFRS 119 did not require an entity to use updated assumptions to determine current service cost and net interest for the period when changes to a defined benefit pension plan occur.

The amendments are effective for annual periods beginning on or after 1 January 2019. Earlier application is permitted.

The “Notice of Issuance” can be downloaded here.

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For enquiries, please contact: 
Malaysian Accounting Standards Board
Unit 13A-1, Menara MBMR 
No. 1, Jalan Syed Putra
58000 Kuala Lumpur
Tel: 03-2273 3100
Fax: 03-2273 9400

Email: technical@masb.org.my