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  • Pas 26. Galang

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    Karlie Pangilinan Galang
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    This document outlines the standards for preparing financial reports for retirement benefit plans. It specifies that reports must include a statement of net assets available for benefits and a description of the funding policy for defined contribution plans. For defined benefit plans, reports must include either a statement showing the net assets and present value of promised benefits, or a statement of net assets noting where the present value is disclosed. The standard also lists numerous disclosure requirements including plan descriptions, actuarial assumptions, contributions, benefits paid, and investment details.

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    This document outlines the standards for preparing financial reports for retirement benefit plans. It specifies that reports must include a statement of net assets available for benefits and a description of the funding policy for defined contribution plans. For defined benefit plans, reports must include either a statement showing the net assets and present value of promised benefits, or a statement of net assets noting where the present value is disclosed. The standard also lists numerous disclosure requirements including plan descriptions, actuarial assumptions, contributions, benefits paid, and investment details.

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    Download as docx, pdf, or txt
    320 views1 page

    Pas 26. Galang

    Uploaded by

    Karlie Pangilinan Galang
    This document outlines the standards for preparing financial reports for retirement benefit plans. It specifies that reports must include a statement of net assets available for benefits and a description of the funding policy for defined contribution plans. For defined benefit plans, reports must include either a statement showing the net assets and present value of promised benefits, or a statement of net assets noting where the present value is disclosed. The standard also lists numerous disclosure requirements including plan descriptions, actuarial assumptions, contributions, benefits paid, and investment details.

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    PAS 26 - Accounting and Reporting by Retirement Benefit Plans available for benefits, and the policy for the

    available for benefits, and the policy for the funding of promised
    Objective: To specify measurement and disclosure principles for the reports of benefits.
    retirement benefit plans. DISCLOSURE
    IT IS THE STANDARD FOR THE PREPARATION OF GENERAL-PURPOSE  Statement of net assets available for benefit, showing: [IAS 26.35(a)]
    FINANCIAL STATEMENTS OR FINANCIAL REPORTS OF  assets at the end of the period
    RETIREMENT BENEFIT PLANS WHICH MAY BE A:  basis of valuation
    1. DEFINED CONTRIBUTION PLAN  details of any single investment exceeding 5% of net assets or 5% of any
    2. DEFINED BENEFIT PLAN category of investment
    Definition of terms:  details of investment in the employer
    1. Retirement Benefit - An arrangement by which an entity provides benefits  liabilities other than the actuarial present value of plan benefits
    (annual income or lump sum) to employees after they terminate from service.  Statement of changes in net assets available for benefits, showing: [IAS 26.35(b)]
    2. Defined contribution plan - A retirement benefit plan by which benefits to  employer contributions
    employees are based on the amount of funds contributed to the plan plus investment
     employee contributions
    earnings thereon.
     investment income
    3. Defined benefit plan - A retirement benefit plan by which employees receive
     other income
    benefits based on a formula usually based on employee earnings or year of service.
    4. Funding – transfer of assets to separate entity (known as the fund) for future  benefits paid
    payment of benefits.  administrative expenses
    5. Net assets available for benefits – assets less liabilities of the plan, excluding  other expenses
    actuarial present value of promised retirement benefits (liability  income taxes
    6. Actuarial PV of promised benefits  profit or loss on disposal of investments
    REPORT OF A DEFINED CONTRIBUTION PLAN  changes in fair value of investments
    The report of a defined contribution plan should contain:  transfers to/from other plans
     a statement of net assets available for benefits and;  Description of funding policy [IAS 26.35(c)] 
     Plan investments shall be carried at fair value. If fair values  Other details about the plan [IAS 26.36] 
    cannot be estimated for certain retirement benefit plan  Summary of significant accounting policies [IAS 26.34(b)] 
    investments, disclosure should be made of the reason why fair  Description of the plan and of the effect of any changes in the plan during the
    value is not used. period [IAS 26.34(c)] 
     a description of the funding policy.  Disclosures for defined benefit plans: [IAS 26.35(d) and (e)]
    REPORT OF A DEFINED BENEFIT PLAN  actuarial present value of promised benefit obligations
    The report of a defined benefit plan should contain either:  description of actuarial assumptions
     a statement that shows the net assets available for benefits, the actuarial  description of the method used to calculate the actuarial present value of
    present value of promised retirement benefits (distinguishing between promised benefit obligations
    vested benefits and non-vested benefits) and the resulting excess or deficit;
    or
     a statement of net assets available for benefits, including either a note
    disclosing the actuarial present value of promised retirement benefits
    (distinguishing between vested benefits and non-vested benefits) or a
    reference to this information in an accompanying actuarial report.
     The actuarial present value of promised retirement benefits
    should be based on the benefits promised under the terms of the
    plan on service rendered to date, using either current salary
    levels or projected salary levels, with disclosure of the basis
    used.
     The report should explain the relationship between the actuarial
    present value of promised retirement benefits and the net assets

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