Commission Regulation (EU) No 475/2012 of 5 June 2012 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Accounting Standard (IAS) 1 and International Accounting Standard (IAS) 19 (Text with EEA relevance) (revoked)

EU Regulation No 475/2012 · Adopted 5 June 2012 · Extends to United Kingdom

Contents

1. 1Article 1 Repealed
2. 2Article 2 Repealed
3. 3Article 3 Repealed
4. Signature
5. Annex INTERNATIONAL ACCOUNTING STANDARDS Repealed
6. Division Repealed
7. AMENDMENTS TO IAS 1Presentation of Financial Statements Repealed
8. 7The following terms are used in this Standard with the meanings specified: Repealed
9. 10A complete set of financial statements comprises: Repealed
10. 10ADivision 10A Repealed
11. Statement of profit or loss and other comprehensive income Repealed
12. 81AThe statement of profit or loss and other comprehensive income (statement of comprehensive income) shall present, in addition to the profit or loss and other comprehensive income sections: Repealed
13. 81BAn entity shall present the following items, in addition to the profit or loss and other comprehensive income sections, as allocation of profit or loss and other comprehensive income for the period: Repealed
14. Information to be presented in profit or loss section or the statement of profit or loss Repealed
15. 82In addition to items required by other IFRSs, the profit or loss section or the statement of profit or loss shall include line items that present the following amounts for the period: Repealed
16. Information to be presented in the other comprehensive income section Repealed
17. 82AThe other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature (including share of the other comprehensive income of associates and joint ventures accounted for using the equity method) and grouped into those that, in accordance with other IFRSs: Repealed
18. 85Division 85 Repealed
19. 86Division 86 Repealed
20. 87Division 87 Repealed
21. 90Division 90 Repealed
22. 91An entity may present items of other comprehensive income either: Repealed
23. 94Division 94 Repealed
24. Information to be presented in the statement(s) of profit or loss and other comprehensive income or in the notes Repealed
25. 100Division 100 Repealed
26. 115Division 115 Repealed
27. 139JDivision 139J Repealed
28. AMENDMENTS TO OTHER IFRSS Repealed
29. IFRS 1First-time Adoption of International Financial Reporting Standards Repealed
30. 21Division 21 Repealed
31. 39KDivision 39K Repealed
32. IAS 12Income Taxes Repealed
33. 77Division 77 Repealed
34. 98BDivision 98B Repealed
35. INTERNATIONAL ACCOUNTING STANDARD 19Employee Benefits Repealed
36. OBJECTIVE Repealed
37. 1The objective of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognise: Repealed
38. SCOPE Repealed
39. 2Division 2 Repealed
40. 3Division 3 Repealed
41. 4The employee benefits to which this Standard applies include those provided: Repealed
42. 5Employee benefits include: Repealed
43. 6Division 6 Repealed
44. 7Division 7 Repealed
45. DEFINITIONS Repealed
46. 8The following terms are used in this Standard with the meanings specified: Repealed
47. SHORT-TERM EMPLOYEE BENEFITS Repealed
48. 9Short-term employee benefits include items such as the following, if expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services: Repealed
49. 10Division 10 Repealed
50. Recognition and measurement Repealed
51. All short-term employee benefits Repealed
52. 11When an employee has rendered service to an entity during an accounting period, the entity shall recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service: Repealed
53. 12Division 12 Repealed
54. Short-term paid absences Repealed
55. 13An entity shall recognise the expected cost of short-term employee benefits in the form of paid absences under paragraph 11 as follows: Repealed
56. 14An entity may pay employees for absence for various reasons including holidays, sickness and short-term disability, maternity or paternity, jury service and military service. Entitlement to paid absences falls into two categories: Repealed
57. 15Division 15 Repealed
58. 16Division 16 Repealed
59. 17The method specified in the previous paragraph measures the obligation at the amount of the additional payments that are expected to arise solely from the fact that the benefit accumulates. In many cases, an entity may not need to make detailed computations to estimate that there is no material obligation for unused paid absences. For example, a sick leave obligation is likely to be material only if there is a formal or informal understanding that unused paid sick leave may be taken as paid annual leave. Repealed
60. Example illustrating paragraphs 16 and 17 Repealed
61. 18Division 18 Repealed
62. Profit-sharing and bonus plans Repealed
63. 19An entity shall recognise the expected cost of profit-sharing and bonus payments under paragraph 11 when, and only when: Repealed
64. 20Under some profit-sharing plans, employees receive a share of the profit only if they remain with the entity for a specified period. Such plans create a constructive obligation as employees render service that increases the amount to be paid if they remain in service until the end of the specified period. The measurement of such constructive obligations reflects the possibility that some employees may leave without receiving profit-sharing payments. Repealed
65. Example illustrating paragraph 20 Repealed
66. 21Division 21 Repealed
67. 22An entity can make a reliable estimate of its legal or constructive obligation under a profit-sharing or bonus plan when, and only when: Repealed
68. 23Division 23 Repealed
69. 24Division 24 Repealed
70. Disclosure Repealed
71. 25Division 25 Repealed
72. POST-EMPLOYMENT BENEFITS: DISTINCTION BETWEEN DEFINED CONTRIBUTION PLANS AND DEFINED BENEFIT PLANS Repealed
73. 26Post-employment benefits include items such as the following: Repealed
74. 27Division 27 Repealed
75. 28Division 28 Repealed
76. 29Examples of cases where an entity’s obligation is not limited to the amount that it agrees to contribute to the fund are when the entity has a legal or constructive obligation through: Repealed
77. 30Under defined benefit plans: Repealed
78. 31Division 31 Repealed
79. Multi-employer plans Repealed
80. 32Division 32 Repealed
81. 33If an entity participates in a multi-employer defined benefit plan, unless paragraph 34 applies, it shall: Repealed
82. 34When sufficient information is not available to use defined benefit accounting for a multi-employer defined benefit plan, an entity shall: Repealed
83. 35One example of a multi-employer defined benefit plan is one where: Repealed
84. 36Where sufficient information is available about a multi-employer defined benefit plan, an entity accounts for its proportionate share of the defined benefit obligation, plan assets and post-employment cost associated with the plan in the same way as for any other defined benefit plan. However, an entity may not be able to identify its share of the underlying financial position and performance of the plan with sufficient reliability for accounting purposes. This may occur if: Repealed
85. 37There may be a contractual agreement between the multi-employer plan and its participants that determines how the surplus in the plan will be distributed to the participants (or the deficit funded). A participant in a multi-employer plan with such an agreement that accounts for the plan as a defined contribution plan in accordance with paragraph 34 shall recognise the asset or liability that arises from the contractual agreement and the resulting income or expense in profit or loss. Repealed
86. Example illustrating paragraph 37 Repealed
87. 38Division 38 Repealed
88. 39Division 39 Repealed
89. Defined benefit plans that share risks between entities under common control Repealed
90. 40Division 40 Repealed
91. 41Division 41 Repealed
92. 42Division 42 Repealed
93. State plans Repealed
94. 43Division 43 Repealed
95. 44Division 44 Repealed
96. 45Division 45 Repealed
97. Insured benefits Repealed
98. 46An entity may pay insurance premiums to fund a post-employment benefit plan. The entity shall treat such a plan as a defined contribution plan unless the entity will have (either directly, or indirectly through the plan) a legal or constructive obligation either: Repealed
99. 47Division 47 Repealed
100. 48Where an entity funds a post-employment benefit obligation by contributing to an insurance policy under which the entity (either directly, indirectly through the plan, through the mechanism for setting future premiums or through a related party relationship with the insurer) retains a legal or constructive obligation, the payment of the premiums does not amount to a defined contribution arrangement. It follows that the entity: Repealed
101. 49Division 49 Repealed
102. POST-EMPLOYMENT BENEFITS: DEFINED CONTRIBUTION PLANS Repealed
103. 50Division 50 Repealed
104. Recognition and measurement Repealed
105. 51When an employee has rendered service to an entity during a period, the entity shall recognise the contribution payable to a defined contribution plan in exchange for that service: Repealed
106. 52Division 52 Repealed
107. Disclosure Repealed
108. 53Division 53 Repealed
109. 54Division 54 Repealed
110. POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS Repealed
111. 55Division 55 Repealed
112. Recognition and measurement Repealed
113. 56Division 56 Repealed
114. 57Accounting by an entity for defined benefit plans involves the following steps: Repealed
115. 58Division 58 Repealed
116. 59Division 59 Repealed
117. 60Division 60 Repealed
118. Accounting for the constructive obligation Repealed
119. 61Division 61 Repealed
120. 62Division 62 Repealed
121. Statement of financial position Repealed
122. 63Division 63 Repealed
123. 64When an entity has a surplus in a defined benefit plan, it shall measure the net defined benefit asset at the lower of: Repealed
124. 65A net defined benefit asset may arise where a defined benefit plan has been overfunded or where actuarial gains have arisen. An entity recognises a net defined benefit asset in such cases because: Repealed
125. Recognition and measurement: present value of defined benefit obligations and current service cost Repealed
126. 66The ultimate cost of a defined benefit plan may be influenced by many variables, such as final salaries, employee turnover and mortality, employee contributions and medical cost trends. The ultimate cost of the plan is uncertain and this uncertainty is likely to persist over a long period of time. In order to measure the present value of the post-employment benefit obligations and the related current service cost, it is necessary: Repealed
127. Actuarial valuation method Repealed
128. 67Division 67 Repealed
129. 68The projected unit credit method (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) sees each period of service as giving rise to an additional unit of benefit entitlement (see paragraphs 70–74) and measures each unit separately to build up the final obligation (see paragraphs 75–98). Repealed
130. Example illustrating paragraph 68 Repealed
131. Note: Repealed
132. 1Division 1 Repealed
133. 2Division 2 Repealed
134. 3Division 3 Repealed
135. 69Division 69 Repealed
136. Attributing benefit to periods of service Repealed
137. 70In determining the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost, an entity shall attribute benefit to periods of service under the plan’s benefit formula. However, if an employee’s service in later years will lead to a materially higher level of benefit than in earlier years, an entity shall attribute benefit on a straight-line basis from: Repealed
138. 71The projected unit credit method requires an entity to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations). An entity attributes benefit to periods in which the obligation to provide post-employment benefits arises. That obligation arises as employees render services in return for post-employment benefits that an entity expects to pay in future reporting periods. Actuarial techniques allow an entity to measure that obligation with sufficient reliability to justify recognition of a liability. Repealed
139. Examples illustrating paragraph 71 Repealed
140. 1A defined benefit plan provides a lump sum benefit of CU100 payable on retirement for each year of service. Repealed
141. 2A plan provides a monthly pension of 0,2 per cent of final salary for each year of service. The pension is payable from the age of 65. Repealed
142. 72Employee service gives rise to an obligation under a defined benefit plan even if the benefits are conditional on future employment (in other words they are not vested). Employee service before the vesting date gives rise to a constructive obligation because, at the end of each successive reporting period, the amount of future service that an employee will have to render before becoming entitled to the benefit is reduced. In measuring its defined benefit obligation, an entity considers the probability that some employees may not satisfy any vesting requirements. Similarly, although some post-employment benefits, for example, post-employment medical benefits, become payable only if a specified event occurs when an employee is no longer employed, an obligation is created when the employee renders service that will provide entitlement to the benefit if the specified event occurs. The probability that the specified event will occur affects the measurement of the obligation, but does not determine whether the obligation exists. Repealed
143. Examples illustrating paragraph 72 Repealed
144. 1A plan pays a benefit of CU100 for each year of service. The benefits vest after ten years of service. Repealed
145. 2A plan pays a benefit of CU100 for each year of service, excluding service before the age of 25. The benefits vest immediately. Repealed
146. 73The obligation increases until the date when further service by the employee will lead to no material amount of further benefits. Therefore, all benefit is attributed to periods ending on or before that date. Benefit is attributed to individual accounting periods under the plan’s benefit formula. However, if an employee’s service in later years will lead to a materially higher level of benefit than in earlier years, an entity attributes benefit on a straight-line basis until the date when further service by the employee will lead to no material amount of further benefits. That is because the employee’s service throughout the entire period will ultimately lead to benefit at that higher level. Repealed
147. Examples illustrating paragraph 73 Repealed
148. 1A plan pays a lump sum benefit of CU1,000 that vests after ten years of service. The plan provides no further benefit for subsequent service. Repealed
149. 2A plan pays a lump sum retirement benefit of CU2,000 to all employees who are still employed at the age of 55 after twenty years of service, or who are still employed at the age of 65, regardless of their length of service. Repealed
150. 3A post-employment medical plan reimburses 40 per cent of an employee’s post-employment medical costs if the employee leaves after more than ten and less than twenty years of service and 50 per cent of those costs if the employee leaves after twenty or more years of service. Repealed
151. 4A post-employment medical plan reimburses 10 per cent of an employee’s post-employment medical costs if the employee leaves after more than ten and less than twenty years of service and 50 per cent of those costs if the employee leaves after twenty or more years of service. Repealed
152. 74Where the amount of a benefit is a constant proportion of final salary for each year of service, future salary increases will affect the amount required to settle the obligation that exists for service before the end of the reporting period, but do not create an additional obligation. Therefore: Repealed
153. Example illustrating paragraph 74 Repealed
154. Actuarial assumptions Repealed
155. 75Division 75 Repealed
156. 76Actuarial assumptions are an entity’s best estimates of the variables that will determine the ultimate cost of providing post-employment benefits. Actuarial assumptions comprise: Repealed
157. 77Division 77 Repealed
158. 78Division 78 Repealed
159. 79Division 79 Repealed
160. 80Division 80 Repealed
161. Actuarial assumptions: mortality Repealed
162. 81Division 81 Repealed
163. 82Division 82 Repealed
164. Actuarial assumptions: discount rate Repealed
165. 83Division 83 Repealed
166. 84Division 84 Repealed
167. 85Division 85 Repealed
168. 86Division 86 Repealed
169. Actuarial assumptions: salaries, benefits and medical costs Repealed
170. 87An entity shall measure its defined benefit obligations on a basis that reflects: Repealed
171. 88Actuarial assumptions reflect future benefit changes that are set out in the formal terms of a plan (or a constructive obligation that goes beyond those terms) at the end of the reporting period. This is the case if, for example: Repealed
172. 89Actuarial assumptions do not reflect future benefit changes that are not set out in the formal terms of the plan (or a constructive obligation) at the end of the reporting period. Such changes will result in: Repealed
173. 90Division 90 Repealed
174. 91Some defined benefit plans limit the contributions that an entity is required to pay. The ultimate cost of the benefits takes account of the effect of a limit on contributions. The effect of a limit on contributions is determined over the shorter of: Repealed
175. 92Division 92 Repealed
176. 93Division 93 Repealed
177. 94Changes in employee or third-party contributions in respect of service result in: Repealed
178. 95Division 95 Repealed
179. 96Division 96 Repealed
180. 97Division 97 Repealed
181. 98Division 98 Repealed
182. Past service cost and gains and losses on settlement Repealed
183. 99Division 99 Repealed
184. 100Division 100 Repealed
185. 101Division 101 Repealed
186. Past service cost Repealed
187. 102Division 102 Repealed
188. 103An entity shall recognise past service cost as an expense at the earlier of the following dates: Repealed
189. 104Division 104 Repealed
190. 105Division 105 Repealed
191. 106Division 106 Repealed
192. 107Division 107 Repealed
193. 108Past service cost excludes: Repealed
194. Gains and losses on settlement Repealed
195. 109The gain or loss on a settlement is the difference between: Repealed
196. 110Division 110 Repealed
197. 111Division 111 Repealed
198. 112Division 112 Repealed
199. Recognition and measurement: plan assets Repealed
200. Fair value of plan assets Repealed
201. 113Division 113 Repealed
202. 114Division 114 Repealed
203. 115Division 115 Repealed
204. Reimbursements Repealed
205. 116When, and only when, it is virtually certain that another party will reimburse some or all of the expenditure required to settle a defined benefit obligation, an entity shall: Repealed
206. 117Division 117 Repealed
207. 118Division 118 Repealed
208. 119Division 119 Repealed
209. Components of defined benefit cost Repealed
210. 120An entity shall recognise the components of defined benefit cost, except to the extent that another IFRS requires or permits their inclusion in the cost of an asset, as follows: Repealed
211. 121Division 121 Repealed
212. 122Division 122 Repealed
213. Net interest on the net defined benefit liability (asset) Repealed
214. 123Division 123 Repealed
215. 124Division 124 Repealed
216. 125Division 125 Repealed
217. 126Division 126 Repealed
218. Remeasurements of the net defined benefit liability (asset) Repealed
219. 127Remeasurements of the net defined benefit liability (asset) comprise: Repealed
220. 128Actuarial gains and losses result from increases or decreases in the present value of the defined benefit obligation because of changes in actuarial assumptions and experience adjustments. Causes of actuarial gains and losses include, for example: Repealed
221. 129Division 129 Repealed
222. 130Division 130 Repealed
223. Presentation Repealed
224. Offset Repealed
225. 131An entity shall offset an asset relating to one plan against a liability relating to another plan when, and only when, the entity: Repealed
226. 132Division 132 Repealed
227. Current/non-current distinction Repealed
228. 133Division 133 Repealed
229. Components of defined benefit cost Repealed
230. 134Division 134 Repealed
231. Disclosure Repealed
232. 135An entity shall disclose information that: Repealed
233. 136To meet the objectives in paragraph 135, an entity shall consider all the following: Repealed
234. 137If the disclosures provided in accordance with the requirements in this Standard and other IFRSs are insufficient to meet the objectives in paragraph 135, an entity shall disclose additional information necessary to meet those objectives. For example, an entity may present an analysis of the present value of the defined benefit obligation that distinguishes the nature, characteristics and risks of the obligation. Such a disclosure could distinguish: Repealed
235. 138An entity shall assess whether all or some disclosures should be disaggregated to distinguish plans or groups of plans with materially different risks. For example, an entity may disaggregate disclosure about plans showing one or more of the following features: Repealed
236. Characteristics of defined benefit plans and risks associated with them Repealed
237. 139An entity shall disclose: Repealed
238. Explanation of amounts in the financial statements Repealed
239. 140An entity shall provide a reconciliation from the opening balance to the closing balance for each of the following, if applicable: Repealed
240. 141Each reconciliation listed in paragraph 140 shall show each of the following, if applicable: Repealed
241. 142An entity shall disaggregate the fair value of the plan assets into classes that distinguish the nature and risks of those assets, subdividing each class of plan asset into those that have a quoted market price in an active market (as defined in IFRS 13 Fair Value Measurement ) and those that do not. For example, and considering the level of disclosure discussed in paragraph 136, an entity could distinguish between: Repealed
242. 143Division 143 Repealed
243. 144Division 144 Repealed
244. Amount, timing and uncertainty of future cash flows Repealed
245. 145An entity shall disclose: Repealed
246. 146Division 146 Repealed
247. 147To provide an indication of the effect of the defined benefit plan on the entity’s future cash flows, an entity shall disclose: Repealed
248. Multi-employer plans Repealed
249. 148If an entity participates in a multi-employer defined benefit plan, it shall disclose: Repealed
250. Defined benefit plans that share risks between entities under common control Repealed
251. 149If an entity participates in a defined benefit plan that shares risks between entities under common control, it shall disclose: Repealed
252. 150The information required by paragraph 149(c) and (d) can be disclosed by cross-reference to disclosures in another group entity’s financial statements if: Repealed
253. Disclosure requirements in other IFRSs Repealed
254. 151Where required by IAS 24 an entity discloses information about: Repealed
255. 152Division 152 Repealed
256. OTHER LONG-TERM EMPLOYEE BENEFITS Repealed
257. 153Other long-term employee benefits include items such as the following, if not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service: Repealed
258. 154Division 154 Repealed
259. Recognition and measurement Repealed
260. 155Division 155 Repealed
261. 156For other long-term employee benefits, an entity shall recognise the net total of the following amounts in profit or loss, except to the extent that another IFRS requires or permits their inclusion in the cost of an asset: Repealed
262. 157Division 157 Repealed
263. Disclosure Repealed
264. 158Division 158 Repealed
265. TERMINATION BENEFITS Repealed
266. 159Division 159 Repealed
267. 160Division 160 Repealed
268. 161The form of the employee benefit does not determine whether it is provided in exchange for service or in exchange for termination of the employee’s employment. Termination benefits are typically lump sum payments, but sometimes also include: Repealed
269. 162Indicators that an employee benefit is provided in exchange for services include the following: Repealed
270. 163Division 163 Repealed
271. 164Division 164 Repealed
272. Recognition Repealed
273. 165An entity shall recognise a liability and expense for termination benefits at the earlier of the following dates: Repealed
274. 166For termination benefits payable as a result of an employee’s decision to accept an offer of benefits in exchange for the termination of employment, the time when an entity can no longer withdraw the offer of termination benefits is the earlier of: Repealed
275. 167For termination benefits payable as a result of an entity’s decision to terminate an employee’s employment, the entity can no longer withdraw the offer when the entity has communicated to the affected employees a plan of termination meeting all of the following criteria: Repealed
276. 168Division 168 Repealed
277. Measurement Repealed
278. 169An entity shall measure termination benefits on initial recognition, and shall measure and recognise subsequent changes, in accordance with the nature of the employee benefit, provided that if the termination benefits are an enhancement to post-employment benefits, the entity shall apply the requirements for post-employment benefits. Otherwise: Repealed
279. 170Because termination benefits are not provided in exchange for service, paragraphs 70–74 relating to the attribution of the benefit to periods of service are not relevant. Repealed
280. Example illustrating paragraphs 159–170 Repealed
281. Background Repealed
282. Termination benefits Repealed
283. Benefits provided in exchange for service Repealed
284. Disclosure Repealed
285. 171Division 171 Repealed
286. TRANSITION AND EFFECTIVE DATE Repealed
287. 172Division 172 Repealed
288. 173An entity shall apply this Standard retrospectively, in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, except that: Repealed
289. Appendix Repealed