International Accounting Standard 19 meaning

Used in legal practice to describe the IFRS accounting rules for employee benefits—particularly pensions—applied in company accounts. IAS 19 sets how pension cost is calculated for the profit and loss account and what pension assets and liabilities appear on the balance sheet. In the UK it applies to IFRS reporters (IFRS as adopted in the UK); in Ireland to IFRS reporters (IFRS as adopted by the EU). It is an accounting standard, not legislation, but is routinely relied on in corporate, pensions and disputes work where financial statements are relevant. Key features include: measurement of defined benefit obligations using the projected unit credit method; discount rates based on high‑quality corporate bonds; recognition of current and past service cost and net interest in profit or loss; remeasurements (actuarial gains/losses and asset returns) in other comprehensive income; plan assets at fair value; curtailments/settlements recognised when they occur; extensive disclosures. The balance sheet shows a net defined benefit liability or asset (subject to any asset‑ceiling restriction). IAS 19 addresses accounting, not scheme funding; it does not alter statutory funding duties. Usage is consistent across England & Wales, Scotland and Northern Ireland. Non‑IFRS entities typically apply FRS 102 Section 28, which differs in detail.