Companies (Accounting Standards) Amendment Rules, 2008

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..... Amendment Rules, 2008. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Companies (Accounting Standards) Rules, 2006, in the Annexure, in Part B, in Accounting Standard - 15 (Employee Benefits)- (i) after paragraph 92, the following shall be inserted, namely:- "92A. Paragraph 145(b)(iii) explains the need to consider any unrecognised part of the transitional liability in accounting for subsequent actuarial gains." (ii) for paragraph 116 and example illustrating Paragraph 116, the following shall be substituted, namely:- "116. Where a curtailment relates only to some of the employees covered by a plan, or where only part of an obligation is settled, the gain or loss includes a pr .....

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..... r Curtailment Net present value of obligation 1,000 (100) 900 Fair value of plan assets (820) - (820) 180 (100) 80 Unrecognised past service cost (50) 5 (45) Unrecognised transitional amount(100x4/5) (80) 8 (72) Net liability recognised in balance sheet (50) (87) (37) An asset of Rs. 37 will be recognised (it is assumed that the amount under paragraph 59(b) is higher than Rs. 37)." (iii) under the heading 'Transitional Provisions' and before the sub-heading "Employee Benefits other than Defined Benefit Plans and Termi .....

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..... ional liability; and (iv) include the related part of the unrecognised transitional liability in determining any subsequent gain or loss on settlement or curtailment. If the transitional liability is less than the liability that would have been recognized at the same date as per the pre-revised AS 15, the enterprise should recognise that decrease immediately as an adjustment against the openingbalance of revenue reserves and surplus. Example Illustrating Paragraphs 144 and 145 At 31st March 20X7, an enterprise's balance sheet includes a pension liability of Rs. 100, recognised as per the pre-revised AS 15 issued by the ICAI in 1995. The enterprise adopts the Standard as of 1st April 20X7, when the present value .....

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