IASB committee concedes defeat on contribution-based promises

first_imgThe International Accounting Standards Board’s interpretation’s committee has called a halt to efforts to come up with accounting guidance for companies with non-traditional defined benefit (DB) pension schemes.The plans – dubbed contribution-based promises, or ‘intermediate risk’ plans – have proved to be troublesome to account for under the projected unit credit model found in International Accounting Standard 19, Employee Benefits (IAS19).Since 2004, both the committee, known officially as the International Financial Reporting Standards Interpretations Committee, and the IASB have tried and failed to develop an appropriate accounting approach for this troublesome class of pension plan.The committee’s decision, which emerged during its 29 January meeting, means constituents must now wait for the IASB to add a pensions-accounting project to its work plan. Commenting on the news, Eric Steedman, a leading pensions consultant with Towers Watson, told IPE: “The Interpretations Committee has effectively said the issue is too big for them to solve expeditiously.“Unfortunately, for now at least, this leaves preparers with such plans to carry on ‘doing their best’ with a statement that does not really cater for their situation.”The IFRS IC’s predecessor, the International Financial Reporting Interpretations Committee, published the so-called IFRIC D9 approach for contribution-based promises in a consultation document back in 2004.The committee called a halt to that work, however, when, in 2006, the IASB launched its unsuccessful bid to develop a new accounting methodology to deal with intermediate-risk pensions, or contribution-based promises.But fresh life was breathed into that approach, when the IFRS IC decided to take another look at contribution-based promises accounting.Both D9, and the IASB’s contribution-based promises model, set out to address the accounting challenges that arise when IAS19’s projected unit credit measurement model and discounting approach is applied to non-traditional DB plans.One obstacle to good accounting that is often cited by critics of IAS19 is that the standard forces them to discount projected returns on a pool of equity assets using either a high-quality corporate bond or government bond discount rate.The mood around the committee table during the 29 January meeting was largely downbeat on the committee’s prospects for bringing the effort to a successful conclusion that preparers would welcome.Laurence Rivat, a senior audit partner with Deloitte in France, said she was unclear who would benefit from any guidance that the committee might come up with.Rivat reported that constituents had told her that any guidance that might emerge from the committee would not change what they “are currently doing”.She added: “What we really need is that the board take on a project to review fundamentally IAS19 to deal with those plans where there is risk-sharing between employees and employers.”Similarly, E&Y partner John O’Grady said: “I would be in favour of discontinuing this project because I don’t think we are able to control ourselves when it comes to scope. That has always been the problem with this.“We are trying to solve some fundamental problems with IAS19, which to me is a board project to sort out IAS19 to deal with the modern types of plans that are out there.”As for the long-term outlook for an IASB-level pensions project, IASB director Alan Teixeira said now might be a good time to accelerate the board’s apparent research project on pensions accounting.Speaking during a 16 September 2013 IASB meeting, Teixeira said the pensions research effort was “on the longer-term research plan” but had no staff allocated to it.He also noted that no standard setters had “expressed an interest in the project.”According to information posted on the IASB’s website, the board expects to hold a consultation on the shape of its future agenda in 2015.A feedback statement on the IASB’s 2011 agenda consultation bracket pensions accounting, share-based payments and income taxes together as longer-term priorities.last_img read more

Saturday almost had it all at Shawano

first_imgJoey Taycher won for the first time in his IMCA Modified career Saturday at Shawano Speedway. (Photo by A and H Photos)By Scott OwenSHAWANO, Wis. (June 10) — One night removed from a full moon, the Shawano Speedway al­most had it all … a nasty wreck, a first-time winner, sweet redemption following a nasty wreck and drivers coming from deep in the field.Joey Taycher got soaked in victory lane after his first career IMCA Modified victory. Travis Van Straten won his fourth local IMCA Sunoco Stock Car feature of the season and Jason Ebert won his first Karl Chevrolet Northern SportMod feature of the season.The IMCA Modified feature got off to a scary start as more than half the field was involved in a wreck at the end of the back straight away. Lance Arneson rolled multiple times before his car came to rest on its side. All drivers were okay though numerous cars were eliminated from action.Once the race got going again, Taycher and Matt McDermid raced side-by-side for the top spot before Taycher pulled ahead. Taycher led the rest of the race for his first career win in the divi­sion. McDermid held on to finish a strong second in only his third night back after a seven-year hiatus. Seventy-six-year young Jerry Muenster continues to amaze after a third place finish.Luke Uttecht led early in the IMCA Stock Car feature as Van Straten quickly raced to se­cond. Van Straten and Justin Jacobsen passed Uttecht to begin a battle for the lead. As the laps clicked away, Jacobsen made numerous attempts to find a way around Van Straten. Jacobsen tried the high line right on the wall and the low line right on the barrels, but to no avail. Van Straten held on to win the race, his fourth in a row. Dan Michonski came from 15th to finish third.The Northern SportMod feature was led early by Tyler Thiex but Ebert quickly moved to the front. Ebert led the rest of the way fending off a late charge by Lucas Lamberies for the win. For Ebert, it was sweet redemption after a nasty wreck a few weeks back. Lamberies, fresh off a big win in Davenport, Iowa the previous night, came from 18th to finish second. Jordan Barkholtz took third.last_img read more

Bulldogs 7th Grade Team Wins Annual St. Louis/Batesville Crosstown Classic Invitational Tournament

first_imgThe Batesville Seventh Grade Boys Basketball team won the 7th Annual St. Louis/Batesville Crosstown Classic Invitational Tournament on December 27th.  The tournament featured teams from Franklin County, Connersville, Jennings County, South Ripley, Batesville, and St. Louis. The Bulldogs beat Franklin County in the first game of pool play by a score of 41-21 and were led in scoring by Jacob Stenger with 13.  In the second pool play game, Batesville defeated Jennings County by a score of 49-38 with top scorer Cade Kaiser notching 14.  In the championship game, Batesville faced off against South Ripley and emerged with the tournament win 49-43 with Cade Kaiser scoring 25.   The team is coached by Garrett Burkhart and now holds a 14-1 record. Courtesy of Mark Stenger.last_img read more