The ACT has responded to The International Accounting Standards Board (IASB) on their proposals in IASB Discussion Paper – Preliminary views on amendments to IAS 19 Employee benefits (issued March 2008). The ACT accepts that there is no justification for spreading actuarial gains and losses but rather they should be recognised in the year in which they occur. We recognised that there are anomalies in the methods for calulating the interest expense on liabilities as compared to the income on assets, however overall we would not welcome a change to the current standard whereby expected returns are used to calculate the income element taken to P&L.
