IAS 26 Retirement Benefit Plans

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Transcript of IAS 26 Retirement Benefit Plans

IAS 26

IAS 26 ACCOUNTING AND REPORTING BY RETIREMENT BENEFIT PLANS9/29/20091IAS 26 Retirement benefit plans

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SCOPEIncludesExcludesReports to participants as a groupPension schemes, superannuation schemes, retirement benefit schemes, defined contribution plans, defined benefit plansSeparate entity from employersSeparate funds managed by trusteesGroup funds managed by insurance companies

Reports about retirement benefit rights of individual participantsIAS 19 cost of retirement benefits in FS of employersInsurance policies of individuals paid for by the employerOther employment benefits

9/29/20092IAS 26 Retirement benefit plans

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DEFINITIONS9/29/20093IAS 26 Retirement benefit plans

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DEFINITIONS9/29/20094IAS 26 Retirement benefit plans

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DEFINITIONS9/29/20095IAS 26 Retirement benefit plans

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DEFINED CONTRIBUTION PLANS9/29/20096IAS 26 Retirement benefit plans

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DEFINED CONTRIBUTION PLANS9/29/20097IAS 26 Retirement benefit plans

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DEFINED BENEFIT PLANS9/29/20098IAS 26 Retirement benefit plans

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DEFINED BENEFIT PLANSPV of promised retirement benefitsFor services rendered to dateUse either current or projected salary levelsDisclose the basis usedDisclose the effect of major change in actuarial assumptionsExplain the relationship betweenActuarial PV of promised retirement benefitsNet assets available for benefitsPolicy for funding of promised benefits9/29/20099IAS 26 Retirement benefit plans

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DEFINED BENEFIT PLANS9/29/200910IAS 26 Retirement benefit plans

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Actuarial present value of promised retirement benefitsCurrent salary approachProjected salary approach9/29/200911IAS 26 Retirement benefit plans

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Valuation of plan assetsRetirement benefit plan investments shall be carried at fair value. Marketable securities: fair value = market valueWhere estimate of fair value not possible, disclose reasonFixed redemption value assuming a constant rate of return to maturityIf carried at another more appropriate value, disclose fair valueAccount for fund assets according to other standards9/29/200912IAS 26 Retirement benefit plans

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DisclosureStatement of changes in net assets available for benefitsEmployer contributionsEmployee contributionsInvestment incomeOther incomeBenefits paid or payableAdministrative expensesOther expensesTaxes on incomeProfits and losses on disposal of investmentsChanges in value of investmentsTransfers to and from other plansStatement of net assets available for benefitsAssets at end of periodBasis of valuationInvestment > 5% of net assets available for benefits or 5% of any class or type of securityDetails of investment in the employerOther liabilities9/29/200913IAS 26 Retirement benefit plans

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DisclosureSummary of significant accounting policiesDescription of the plan and effect of changes during the periodDescription of funding policyDefined benefit plansActuarial PV of promised retirement benefitsVested benefits and non-vested benefitsCurrent salary levels or projected salary levels on benefits promised for service rendered to dateMethod used to calculate PVDescription of significant actuarial assumptions9/29/200914IAS 26 Retirement benefit plans

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DisclosureTrustees reportNames of employers and employee groupsNumber of participants receiving benefitsNumber of other participants under appropriate classificationDefined benefit or defined contribution planNote if participants contribute to the planDescription of retirement benefits promisedTermination termsAny changes to above in the periodReference to other documents readily available to users

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SummaryRetirement benefit plans must report on financial performance and positionActuarial valuation is obtained at least every 3 yearsActuarial present value of promised retirement benefits presented in a statementFinancial position of assets and obligations presented in a separate statementTrustees report and notes describe contribution, membership, participants, terms and conditions, basis for reporting benefits and obligations9/29/200916IAS 26 Retirement benefit plans

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