IAS26_06 - IAS 26 International Accounting Standard 26...

IAS 26
©
IASCF 1203
International Accounting Standard 26
Accounting and Reporting by Retirement
Benefit Plans

IAS 26
1204
©
IASCF
C
ONTENTS
paragraphs
INTERNATIONAL ACCOUNTING STANDARD 26
ACCOUNTING AND REPORTING BY RETIREMENT
BENEFIT PLANS
SCOPE 1–7
DEFINITIONS 8–12
DEFINED CONTRIBUTION PLANS 13–16
DEFINED BENEFIT PLANS 17–31
Actuarial present value of promised retirement benefits 23–26
Frequency of actuarial valuations 27
Financial statement content 28–31
ALL PLANS 32–36
Valuation of plan assets 32–33
Disclosure 34–36
EFFECTIVE DATE 37

IAS 26
©
IASCF 1205
International Accounting Standard 26 Accounting and Reporting by Retirement Benefit Plans
(IAS 26) is set out in paragraphs 1–37. All the paragraphs have equal authority but
retain the IASC format of the Standard when it was adopted by the IASB. IAS 26 should
be read in the context of the Preface to International Financial Reporting Standards and the
Framework for the Preparation and Presentation of Financial Statements . IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors provides a basis for selecting and applying
accounting policies in the absence of explicit guidance.

IAS 26
1206
©
IASCF
International Accounting Standard 26
Accounting and Reporting by Retirement Benefit Plans
Scope
1 This Standard shall be applied in the financial statements of retirement benefit
plans where such financial statements are prepared.
2 Retirement benefit plans are sometimes referred to by various other names, such
as ‘pension schemes’, ‘superannuation schemes’ or ‘retirement benefit schemes’.
This Standard regards a retirement benefit plan as a reporting entity separate
from the employers of the participants in the plan. All other Standards apply to
the financial statements of retirement benefit plans to the extent that they are
not superseded by this Standard.
3 This Standard deals with accounting and reporting by the plan to all participants
as a group. It does not deal with reports to individual participants about their
retirement benefit rights.
4 IAS 19 Employee Benefits is concerned with the determination of the cost of
retirement benefits in the financial statements of employers having plans. Hence
this Standard complements IAS 19.
5 Retirement benefit plans may be defined contribution plans or defined benefit
plans. Many require the creation of separate funds, which may or may not have
separate legal identity and may or may not have trustees, to which contributions
are made and from which retirement benefits are paid. This Standard applies
regardless of whether such a fund is created and regardless of whether there are
trustees.
6 Retirement benefit plans with assets invested with insurance companies are
subject to the same accounting and funding requirements as privately invested
arrangements. Accordingly, they are within the scope of this Standard unless the
contract with the insurance company is in the name of a specified participant or