IPSAS 49 Retirement Benefit Plans

IPSASB has issued IPSAS 49 Retirement Benefit Plans.

Objectives:

To prescribe the accounting and reporting requirements for public sector retirement benefit plans (pension schemes). These are the schemes which provide retirement benefits to public sector employees and other eligible participants.

Scope: 

Covers accounting and reporting requirement for the plan for all participants as a group and not individual participants. It deals with retirement benefits for public sector employees and other participants qualifying to join the plan. It does not cover other forms of employment benefits including termination benefits, deferred compensation arrangements, long service leave benefits, redundancy plans, bonus plans etc.

Recognition:

-Defined Benefits Plans: retirement benefit obligations owed to participants should be recognized in the statement of financial position as a provision for the actuarial present value of the promised retirement benefits.

-Defined Contribution Plans: retirement benefit obligations owed to participants should be recognized in the statement of financial position as defined contribution obligations.

Measurement:

Retirement benefit plans investments shall be measured at fair value.

Effective Date:

IPSAS 49 is effective for annual financial statements beginning on or after January 1, 2026. Early adoption is allowed.

For more info visit IPSAS 49