On 24 June 2014, the EBA published a report analyzing whether the revised IAS 19 Employee Benefits in conjunction with the deduction of net pension assets and changes in net pension liabilities lead to undue volatility of institutions' own funds. The EBA concludes that there may be limited volatility of own funds in most cases, due to changes in accounting and prudential requirements. The European Commission must, by 31 December 2014, prepare a report, taking into account the EBA report, on the issue, together with a legislative proposal (if appropriate) which would introduce an adjustment of defined net benefit pension fund assets or liabilities for the calculation of own funds.
The EBA report is available at: http://www.eba.europa.eu/documents/10180/534414/
EBA+Report+on+the+impact+on+the+volatility+of+own+funds+from+defined+pension+plans.pdf
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