mast image

Special Report

Impact investing

Sections

Germany still at odds over pensions accounting

GERMANY - The German Accounting Standards Committee says it still disagrees with certain amendments to IAS19, the pensions accounting standard.

It's a disagreement that has rumbled on since the summer of last year. It has flared up again with committee president Klaus Pohle outlining his objections to Stig Enevoldsen, chairman of the European Financial Reporting Advisory Group's technical expert group.

Pohle said that proposed requirements referring to actuarial gains and losses "reach beyond an IAS19 amendment at this point in time".

And the question of whether actuarial gains and losses should be recognised directly in equity as well as "recycled" into the income statement needed "to be resolved in the light of the performance reporting project".

Pohle added: "We still disagree with the recognition of actuarial gains and losses within retained earnings and would have preferred presenting actuarial gains and losses separately within equity."

But he said that the amendment to IAS19 could be seen as a "necessary interim solution until a more substantial revision " takes place.

Pohle's comments were in response to a draft letter by Enevoldsen to Alexander Schaub, head of the Internal Market directorate at the European Commission, saying EFRAG supports the amendments to IAS19.

"After considering all arguments, EFRAG supports the objective of the proposed amendments to IAS 19 to allow the immediate recognition of actuarial gains and losses in the balance sheet," Enevoldsen stated.

But he said: "We believe that the full debate of the larger issue of comprehensive income and the concept of recycling, which will require its own full due process, should not be pre-empted."

Industry body EFRAG is planning a series of meetings next month at which it plans to finalise its endorsement letters on the IAS19 amendments and other issues.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<