100 Revised standards of Retirement Benefits
Revised standards of retirement benefits, “Accounting Standards of Retirement Benefits” and “Application Guideline of the Standards of Retirement Benefits,” has been issued on May 2012.
Revised standards clarified that unrecognized actuarial gains or losses and unrecognized prior services costs are recognized in net asset (accumulated other comprehensive income) with tax effect adjusted, while they were added to or deducted from the allowance for the retirement benefits before the revision. And the allowance for the retirement benefits will be the difference between retirement benefit obligation and plan assets.
Please note that calculation method of retirement benefit obligation and employee’s services cost and notes to the financial statements have been revised as well.
The revision for the unrecognized items will be effective in the consolidated financial statements for the year ended on or after May 2014, and the revision for the calculation method of retirement benefit obligation and employee’s services costs will be effective for the fiscal year beginning on or after April 1 2014.
