Page 325 - Group Insurance and Retirement Benefit IC 83 E- Book

Appendix 1

Note: This Appendix is not a part of the Indian Accounting Standard. The purpose of this Appendix is
only to bring out the major differences, if any, between Indian Accounting Standard (Ind AS) 19 and the
corresponding International Accounting Standard (IAS) 19, Employee Benefits, and IFRIC 14, IAS 19 —
The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, issued by
the International Accounting Standards Board.

Comparison with IAS 19, Employee Benefits, and IFRIC 14

1 Paragraph numbers 25-26 appear as ‘Deleted’ in IFRIC 14. In order to maintain consistency
with paragraph numbers of IFRIC 14, the paragraph numbers are retained in Appendix B of
Ind AS 19.

2 According to Ind AS 19 the rate to be used to discount post-employment benefit obligation shall be
determined by reference to the market yields on government bonds, whereas under IAS 19 , the
government bonds can be used only where there is no deep market of high quality corporate bonds.
However, requirements given in IAS 19 in this regard have been retained with appropriate
modifications for subsidiaries, associates, joint ventures and branches domiciled outside India.

3 To illustrate treatment of gratuity subject to ceiling under Indian Gratuity Rules, an example has
been added in paragraph 73.

4 Different terminology is used in this standard, e.g., the term ‘balance sheet’ is used instead of
‘Statement of financial position’. The words ‘approval of the financial statements for issue have
been used instead of ‘authorisation of the financial statements for issue ’ in the context of financial
statements considered for the purpose of events after the reporting period.

5 Paragraph 3A of Appendix B is deleted as this paragraph deals with reason for amending IFRIC 14,
which is irrelevant for Appendix B to Ind AS 19 .

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