Section 28 – Disclosure Checkllist

Section 28 – Employee Benefits

Ref

Defined Contribution Plans

1.      

An entity shall disclose the amount recognised in profit or loss as an expense for defined contribution plans.

28.40

2.      

If an entity treats a defined benefit multi-employer plan as a defined contribution plan because sufficient information is not available to use defined benefit accounting (see paragraph 28.11) it shall:

a)    disclose the fact that it is a defined benefit plan and the reason why it is being accounted for as a defined contribution plan, along with any available information about the plan’s surplus or deficit and the implications, if any, for the entity;

b)    include a description of the extent to which the entity can be liable to the plan for other entities’ obligations under the terms and conditions of the multi-employer plan; and

c)    disclose how any liability recognised in accordance with paragraph 28.11A has been determined.

28.40A

Defined Benefit Plans

3.      

An entity shall disclose the following information about defined benefit plans (except for any defined multi-employer benefit plans that are accounted for as a defined contribution plan in accordance with paragraphs 28.11 and 28.11A, for which the disclosures in paragraphs 28.40 and 28.40A apply instead). If an entity has more than one defined benefit plan, these disclosures may be made in aggregate, separately for each plan, or in such groupings as are considered to be the most useful:

a)    A general description of the type of plan, including funding policy.

b)    The date of the most recent comprehensive actuarial valuation and, if it was not as of the reporting date, a description of the adjustments that were made to measure the defined benefit obligation at the reporting date.

c)    A reconciliation of opening and closing balances for each of the following:

                      i.        the defined benefit obligation;

                     ii.        the fair value of plan assets; and

                    iii.        any reimbursement right recognised as an asset.

d)    Each of the reconciliations in paragraph 28.41(e) shall show each of the following, if applicable:

                   i.        the change in the defined benefit liability arising                            from employee service rendered during the reporting                                period in profit or loss;

                   ii.        interest income or expense;

                  iii.        remeasurement of the defined benefit liability,                             showing separately actuarial gains and losses and the return                   on plan assets less amounts included in (ii) above; and

                  iv.        plan introductions, changes, curtailments and                               settlements.

e)    The total cost relating to defined benefit plans for the period, disclosing separately the amounts:

                      i.        recognised in profit or loss as an expense; and

                     ii.        included in the cost of an asset.

f)     For each major class of plan assets, which shall include, but is not limited to, equity instruments, debt instruments, property, and all other assets, the percentage or amount that each major class constitutes of the fair value of the total plan assets at the reporting date.

g)    The amounts included in the fair value of plan assets for:

                      i.        each class of the entity’s own financial instruments;                         and

                     ii.        *any property occupied by, or other assets used by,                      the entity.

h)    The return on plan assets.

i)      The principal actuarial assumptions used, including, when applicable:

                      i.        the discount rates;

                     ii.        the expected rates of salary increases;

                    iii.        medical cost trend rates; and

                    iv.        any other material actuarial assumptions used.

28.41

4.      

If an entity participates in a defined benefit plan that shares risks between entities under common control (see paragraph 28.38) it shall disclose the following information:

a)    The contractual agreement or stated policy for charging the cost of a defined benefit plan or the fact that there is no policy.

b)    The policy for determining the contribution to be paid by the entity.

c)    If the entity accounts for an allocation of the net defined benefit cost, all the information required in paragraph 28.41.

d)    If the entity accounts for the contributions payable for the period, the information about the plan as a whole required by paragraph 28.41(a), (d), (h) and (i).

28.41A

5.      

This information can be disclosed by cross-reference to disclosures in another group entity’s financial statements if:

a)    that group entity’s financial statements separately identify and disclose the information required about the plan; and

b)    that group entity’s financial statements are available to users of the financial statements on the same terms as the financial statements of the entity and at the same time as, or earlier than, the financial statements of the entity.

28.41A

Long Term Benefits

6.      

For each category of other long-term benefits that an entity provides to its employees, the entity shall disclose the nature of the benefit, the amount of its obligation and the extent of funding at the reporting date.

28.42

Termination Benefits

7.      

For each category of termination benefits that an entity provides to its employees, the entity shall disclose the nature of the benefit, its accounting policy, and the amount of its obligation and the extent of funding at the reporting date.

28.43

8.      

When there is uncertainty about the number of employees who will accept an offer of termination benefits, a contingent liability exists. Section 21 Provisions and Contingencies requires an entity to disclose information about its contingent liabilities unless the possibility of an outflow in settlement is remote.

28.44