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ACCA Strategic Professional · Strategic Business Reporting (International) · Employee benefits

Under IAS 19, which of the following must be disclosed about a defined benefit plan in the notes, in addition to the reconciliation of the net defined benefit liability?

The entity must describe the characteristics of the plan and the risks it exposes the entity to, alongside the amounts recognised and the effect on future cash flows. Individual member data and actuary fees are not required, and disclosing only the expense is inadequate.

  1. AThe names of all individual plan members and their entitlements
  2. BA description of the characteristics of the plan and the risks to which it exposes the entityCorrect
  3. COnly the total pension expense recognised in profit or loss
  4. DThe actuary's personal fees for the year

Explanation

IAS 19 requires disclosures explaining the characteristics of defined benefit plans and the risks they expose the entity to, plus amounts in the financial statements and how the plans affect future cash flows. Individual member details and actuary fees are not required. Disclosing only the expense is insufficient.

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