Major differences between AS 15 and Ind AS 19

Actuarial gains and losses

Under AS 15, all actuarial gains and losses should be recognised immediately in profit or loss.

Under Ind AS 19, actuarial gains and losses are recognised immediately in other comprehensive income. These are subsequently not reclassified to income statement.

Discount Rate

Under AS 15, Market yield on government bonds as at the balance sheet date is used as discount rates.

Under Ind AS 19 also, market yield on government bonds as at the balance sheet date is used as discount rates.

Ind AS 19 contains a curve out from the IFRS in the sense that under IFRS, discount rate is determined by reference to market yield on high quality corporate bonds.

Past service costs and Curtailments

Under AS 15, past service cost is recognised as an expense on a straight line basis over the period until the benefits becomes vested and if, benefits vested already, recognise immediate as an expense.

Entity recognises a curtailment when it occurs.

Under Ind AS 19, past service cost including curtailments is recognised as expenses at the earliest of the following dates:

•       When the plan amendment or curtailment occurs.
•       When the entity recognises related restructuring costs or termination benefits.

Actuarial Valuation

Under AS 15, detailed actuarial valuation is carried out at least once every three years and fair value of  the plan assets are determined at each balance sheet date.

Under Ind AS 19, such calculation is performed at sufficient regularity so that the amounts recognised in the financial statements do not differ materially from the amount that would have been determined at the end of the reporting period. The standard does not specify the sufficient regularity.