II - Provisions: Specific points and Examples

2. Employee Benefits

2.2. Accounting for Post-Employment Benefits

2.2.5. Plan changes: Accounting considerations

• Not every plan change leads to a past service cost
• Plan changes are not just assumption changes, e.g. èchanges to benefits as a result of government changes may not be P&L costs/credits
• Do plan changes affect past service and/or future service?
  • if future service only, then only future service cost is affected
  • if both past service and future service, then curtailment/settlement accounting may be required
  • Examples :