Pension Expenses. Cash Flow Statement or Income Statement.

Hi,

I understand how the Income Statement and Other Comprehensive Income is affected under both GAAP and IFRS. However. What should I be aware of in terms of the Cash Flow Statements?

Is it correct to say that:

    1. Employer Contribution is the “Total Cash Out Flow” that shows up on the CFO - statement?
    1. Total Periodic Pension Cost (Employer Contribution + Change in Funded Status) is the total cost that shows up on the Income Statement.?

This is related to the first mock from CFAI where they ask about “Total Cash Outflow Related to post-employment”

    1. What else should I be aware of in terms of Cash Flow Statements related to the Pension Chapter.

I will not be able to help you, because I have an even huger problem with understanding this vignette.

How do they come up with the calculation of excess contribution when it should be: employer contribution - total periodic pension cost?

total periodic pension cost = contributions - (ending funded status - beginning funded status)

which however I calculate does not match the figure of ‘net retirement expense for the year’.

???

Totally puzzled with this vignette, it’s frightening!