Commission Regulation (EC) No 1126/2008Show full title

Recognition and measurement

128 The amount recognised as a liability for other long-term employee benefits shall be the net total of the following amounts:

(a)

the present value of the defined benefit obligation at the balance sheet date (see paragraph 64);

(b)

minus the fair value at the balance sheet date of plan assets (if any) out of which the obligations are to be settled directly (see paragraphs 102-104).

In measuring the liability, an entity shall apply paragraphs 49-91, excluding paragraphs 54 and 61. An entity shall apply paragraph 104A in recognising and measuring any reimbursement right.

129 For other long-term employee benefits, an entity shall recognise the net total of the following amounts as expense or (subject to paragraph 58) income, except to the extent that another standard requires or permits their inclusion in the cost of an asset:

(a)

current service cost (see paragraphs 63-91);

(b)

interest cost (see paragraph 82);

(c)

the expected return on any plan assets (see paragraphs 105-107) and on any reimbursement right recognised as an asset (see paragraph 104A);

(d)

actuarial gains and losses, which shall all be recognised immediately;

(e)

past service cost, which shall all be recognised immediately; and

(f)

the effect of any curtailments or settlements (see paragraphs 109 and 110).

130 One form of other long-term employee benefit is long-term disability benefit. If the level of benefit depends on the length of service, an obligation arises when the service is rendered. Measurement of that obligation reflects the probability that payment will be required and the length of time for which payment is expected to be made. If the level of benefit is the same for any disabled employee regardless of years of service, the expected cost of those benefits is recognised when an event occurs that causes a long-term disability.