The Financial Reporting Standards Council (FRSC) has issued an Invitation to Comment on an exposure draft issued by the International Accounting Standards Board (IASB) that proposes amendments to IFRIC 14, IAS 19–The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The proposed amendments, when adopted, will amend Philippine Interpretation IFRIC–14.

The IASB proposed amendments are aimed at correcting an unintended consequence of IFRIC 14, an interpretation of IAS 19, Employee Benefits. As a result of the interpretation, entities are in some circumstances not permitted to recognize as an asset some prepayments for minimum funding contributions. The proposed amendments, if confirmed, would remedy this unintended consequence of IFRIC 14.

The FRSC invites comments on the proposed amendments by 10 July 2009. Comments may also be sent electronically to the IASB through the open for comment section at www.iasb.org on or before 27 July 2009, the IASB comment deadline.

The FRSC Invitation to Comment and the IASB exposure draft Prepayments of a Minimum Funding Requirement may be downloaded from the FRSC/PFRS website within the PICPA website at www.picpa.com.ph. The IASB exposure draft is also available on the open for comment section at www.iasb.org.