[anufaye]

Highlights from the changes for defined benefit plan
accounting include:
• Actuarial gains and losses are now required to be recognised in other comprehensive income (OCI) and excluded permanently from profit and loss.
• Expected returns on plan assets will no longer be recognised in profit or loss. Expected returns are replaced by recording interest income in profit or loss, which is calculated using the discount rate used to measure the pension obligation.
• Unvested past service costs can no longer be deferred and recognised over the future vesting period. Instead, all past service costs will be recognised at the earlier of when the amendment/ curtailment occurs or when the entity recognises related restructuring or termination costs.
• These revisions are effective for annual periods beginning on or after 1 January 2013, retrospectively, with very few exceptions. Early application is permitted.

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