The Commission has reported to EP and the Council on the effect of the revised International Accounting Standard (IAS) 19 on employee benefits, on the volatility of own funds of credit institutions and investment firms. The revision of IAS 19 led to changes in the valuation of defined benefit pension fund assets which credit institutions and investment firms are required to deduct from common equity tier 1 items on their balance sheets under the capital requirements regulation. The Commission expects the potential additional volatility of own funds introduced by the revision of IAS 19 to be limited. (Source:Commission Reports on Volatility of Own Funds)