The main changes that the IPSASB has proposed to IPSAS™ 25, so that convergence with IAS 19 is maintained to the extent appropriate, are:
- Remove an option that allows an entity to defer the recognition of changes in the net defined benefit liability (the “corridor approach”);
- Introduce the net interest approach for defined benefit plans;
- Amend certain disclosure requirements for defined benefit plans and multi-employer plans; and
- Simplify the requirements for contributions from employees or third parties to a defined benefit plan when those contributions are applied to a simple contributory plan that is linked to service.