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5.8 Measurement date and frequency
Publication date: 30 Nov 2022
us IFRS & US GAAP guide
IFRS requires interim remeasurements in more circumstances than US GAAP and does not provide for a practical expedient to use a measurement date other than the end of the fiscal year or interim period.
US GAAP | IFRS |
The measurement of plan assets and benefit obligations is required as of the employer’s fiscal year-end balance sheet date, unless the plan is sponsored by a consolidated subsidiary or equity method investee with a different fiscal period. Interim remeasurements generally occur only if there is a significant event, such as a plan amendment, curtailment, or settlement.
US GAAP permits a company to elect an accounting policy to use the calendar month-end closest to the fiscal year-end for measuring plan assets and obligations. The funded status would be adjusted for contributions and other significant events that occur between the alternative measurement date and the fiscal year-end.
A similar practical expedient can also be used for interim remeasurements for significant events that occur on dates other than calendar month-end dates.
| Employers typically remeasure the benefit obligation and plan assets at each interim period to determine the balance sheet and OCI component, but that will not lead to a change in service cost or interest cost (unless there was a plan amendment, curtailment, or settlement).
IFRS does not provide for a practical expedient to use a measurement date other than the end of the fiscal year or interim period.
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