CERTYNEX IFRS ACADEMY

A trainee prepares a note on the consequential amendments that IFRS 18 makes to IAS 19, applicable when the entity applies IFRS 18. Which of the trainee's sentences is wrong?

IFRS 18 deals with the presentation of and disclosures in financial statements, whereas IAS 19 sets the accounting for the components of defined benefit cost.

With IFRS 18, remeasurements of the net defined benefit liability (asset) are recognised in profit or loss rather than in other comprehensive income.

The consequential amendments refer to IFRS 18 for the presentation of service cost and net interest, IAS 19 still not requiring any particular presentation.

Defined benefit cost keeps three components: service cost, net interest and remeasurements of the net liability (asset), which the note recalls.