About
IAS 26 prescribes the minimum content of the financial statements of retirement benefit plans. It requires that the financial statements of a defined benefit plan must contain either:
- a statement that shows the net assets available for benefits; the actuarial present value of promised retirement benefits, distinguishing between vested benefits and non-vested benefits; and the resulting excess or deficit; or
- a statement of net assets available for benefits including either a note disclosing the actuarial present value of promised vested and non-vested retirement benefits or a reference to this information in an accompanying actuarial report.
What you should know
- Know and apply the definitions related to retirement benefit plans.
- Distinguish between defined contribution plans and defined benefit plans.
- Understand the financial statements required for retirement benefit plans.
- Measure plan investments at fair value.
- Present net assets available for benefits.
- Present or disclose the actuarial present value of promised retirement benefits, where applicable.
- Disclose significant information about the plan and its funding policy.