This table sets out illustrative consolidated results for a large and complex organisation. Most IAS 19s are much simpler than this. Factors that complicate reporting for this client are:

  • multiple entities with differing assumption sets
  • consolidation of results across multiple entities
  • transfer of employees, both within Group entities and to or from outside the Group
  • Exchange rate differences over time between jurisdictions
  • advance payments made against accrued end of leaving service benefit.

The Scheme is unfunded as it has no explicit assets, which simplifies matters.

Reconciliation of the Defined Benefit Obligation or DBO


DBO at the beginning of the reporting period (Gross of Advance)


Previous financial year’s end-of year DBO, which is now the opening DBO for this year’s financial. See DBO.
Advance at the beginning of the reporting period


Balances of Advances made to employees, as at the start of the reporting period.
DBO at the beginning of the reporting period (Net of Advance)


Past Service (Cost) / Gain


Changes due to various reasons, for example amendments to the scheme benefits affecting
prior-period service, employees incorrectly omitted from or included in the last valuation
(cost / gain respectively), or because of being the first-time valuation of the scheme. In this
Illustration, the combined changes have resulted in a net cost.
Current Service Cost


The accrual cost of one more year’s service for employees. See Current Service Cost.
Interest Cost


The cost of “unwinding” one year’s discount rate. See Interest Cost.
Net Benefits paid including pending to be paid for the period


Benefits paid (or outstanding to be paid) to leavers during the reporting period.
Benefits transferred to/(from) sister company


Transfer amounts paid (or received) for employees transferring to (or from) another
Group entity, where service and hence benefits are preserved. The transfer amounts
represent the liability accrued to the date of transfer. In this illustration, the net effect is that
more transfer amounts have been paid to a sister company, than have been received from
a sister entity.
Advance Benefits paid for the current employees


Advance payments made in there reporting period.
Remeasurements due to Actuarial Gain / (Loss)


Balancing item for the rest of this reconciliation, but which can be reasonably accurately explained, in terms of where the gain or loss arises from. Changes in assumptions and/or actual experience not matching expectations will lead to gains or losses. In this illustration, an actuarial gain has been realised.
Exchange Gain/(Loss)


Where multiple entities across multiple currencies are consolidated.
DBO at the end of the reporting period (Net of Advance)


Calculated as the sum total from all the above entries.
Advance at the end of the financial year


Balance of Advances made to employees, as at the end of the reporting period
DBO at the end of the reporting period (Gross of Advance)


As valued using the PUC. See PUC and DBO.
Scheme Cost to P&L


Past Service (Cost) / Gain plus Current Service Cost plus Interest Cost
Scheme P&L Cost as a % of Scheme Salary (including Past Service (Cost)/Gain)


Illustrative figure, not actual for these figures.
Scheme Cost to Other Comprehensive Income


Actuarial Gain/(Loss) only