PensionsEurope welcomes EFRAG’s initiative to provide ideas and approaches for a more meaningful accounting of plans with asset-return promise, as the usual IAS 19 accounting approach does not always support “a true and fair view” on plans’ assets and liabilities. In our answer, we also provide numerous technical comments and welcome both the intend of EFRAG and the IASB to define more clearly what is meant by “pension benefits that depend on asset returns“.
We see some pros and cons if the scope of the EFRAG project is aligned with the one that the IASB is considering for a limited project. However, no matter what the scope of the EFRAG project will finally be, we support and encourage EFRAG and IASB to finalise their projects within a reasonable time frame in order to solve the current challenges with accounting for hybrid plans.
