Defined benefit basics

9 min · IAS 19
01 · Concept

Short-term benefits are expensed when employees render service. Defined benefit pensions require actuarial measurement and remeasurements in OCI.

  • 01DC plans: expense contributions.
  • 02DB plans: recognise net pension liability/asset on the balance sheet.
  • 03Remeasurements (actuarial gains/losses) go through OCI, never recycled.