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CMA Intermediate · Corporate Accounting and Auditing · Employee Benefits (Ind AS 19)

Under Ind AS 19, in which statement are remeasurements of the net defined benefit liability (asset) recognised, and what is their later treatment?

Remeasurements of a defined benefit plan are recognised in other comprehensive income when they arise and are never reclassified to profit or loss in later periods. They may be transferred within equity, but no recycling or amortisation through profit or loss is allowed.

  1. AIn profit or loss of the period, as part of employee benefit expense
  2. BIn other comprehensive income, and not reclassified to profit or loss in a later periodCorrect
  3. CIn other comprehensive income, and reclassified to profit or loss when the plan is settled
  4. DIn other comprehensive income, and amortised to profit or loss over the employees' remaining service lives

Explanation

Remeasurements (actuarial gains and losses, return on plan assets excluding net interest, and asset-ceiling changes) go to OCI in the period they arise. They are not reclassified to profit or loss in a later period, although they may be moved within equity. Reclassification on settlement and amortisation over service life are not permitted.

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