Transitional liability – defined benefit plans

For an entity on first adopting IAS 19:

1. the present value of the obligation at the date of adoption;
2. minus the fair value, at the date of adoption, of plan assets (if any) out of which the obligations are to be settled directly;
3. minus any past service cost that shall be recognised in later periods.

Transitional liability (defined benefit plans) is specifically discussed in IAS 19 Employee Benefits.

Source: Glossary of Terms of IFRSs as at 31 December 2008.