I know under US GAAP some costs are amortized using the corridor method. Are Past service + Acturial gain/loss plumped together and amortized using the corridor method (=max(Beg pbo balance, Beg Plan assets) *10%? or is it only Acturial gain/losses that is amortized using the corridor method and past service is simply dividend by the life expectancy and amortized.
Corridor method applies only to Actuarial G/L, which includes changes only in actuarial assumptions.
Past service cost goes to OCI and amortised (without corridor approach) over service life.
Are you 100% sure?
According to Schweser, Under U.S. GAAP, past service costs are amortized over the average service life of employees.
additionaly, under U.S GAAP, acturaial gains and losses are amortized using the corridor approach
Yup Buddy 100% sure.
Thank you gents!!!
Shouldn’t the entire remeasurement section (= actuarial G/L AND net return on assets (i.e. Actual return - E®)) be amortized using the corridor approach?