IFRS / FAS / RJ271

Listed companies in Europe are obliged to report on basis of the International Financial Reporting Standards (IFRS). This legislation also affects the accounting framework of pensions that is defined in the International Accounting Standard number 19 (IAS 19).

National legislation in the Netherlands has been amended in line with the realisation of IAS 19. The Dutch Accounting Standards Board (DASB) has also presented a guideline in this respect: Guideline 271 (DASB 271). Dutch companies are obliged to adhere to this guideline for pension accounting.

The FAS 87 standards are important for companies that have business relationships with American investors.

In many cases an actuarial valuation is necessary for the accounting of the costs and commitments of the pension plan(s) in the annual accounts. In the current market these valuations are often complex and expensive but this does not have to be the case if you choose the right service provider.