ANNEX

INTERNATIONAL ACCOUNTING STANDARD IAS 19 (REVISED 2002)

Employee Benefits

POST-EMPLOYMENT BENEFITS: DEFINED BENEFIT PLANS

Recognition and measurement: present value of defined benefit obligations and current service cost

Attributing benefit to periods of service

68. The projected unit credit method requires an enterprise to attribute benefit to the current period (in order to determine current service cost) and the current and prior periods (in order to determine the present value of defined benefit obligations). An enterprise attributes benefit to periods in which the obligation to provide post-employment benefits arises. That obligation arises as employees render services in return for post-employment benefits which an enterprise expects to pay in future reporting periods. Actuarial techniques allow an enterprise to measure that obligation with sufficient reliability to justify recognition of a liability.

Examples illustrating paragraph 68

1. A defined benefit plan provides a lump-sum benefit of 100 payable on retirement for each year of service.
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2. A plan provides a monthly pension of 0,2 % of final salary for each year of service. The pension is payable from the age of 65.
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Repealed by Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance).