BC258 IAS 19 before the amendments made in 2011 specified that an entity should recognise termination benefits when the entity was demonstrably committed to providing those benefits. In revisiting that conclusion, the Board considered the following circumstances:

(a) an offer of termination benefits that an entity can withdraw at its own discretion before acceptance by the employee.

(b) an offer of termination benefits that an entity cannot withdraw, including benefits provided as a result of an entity's decision to terminate an employee's employment (ie if the employee has no choice but to accept what is given).

BC259 The Board decided that the factor determining the timing of recognition is the entity's inability to withdraw the offer of termination benefits. In the circumstances in (a) this would be when the employee accepts the offer and in the circumstances in (b) this would be when the entity communicates a termination plan to the affected employees. The Board concluded that until these events occur the employer has discretion to avoid paying termination benefits and, therefore, a liability does not exist.