Can someone help me with the am mock question 17 on pensions. Question is asking to find out economic expense, but instead of using employer contri - change in FS, it takes the contri - total pension expense.
This is a SOB of a question. The trick here is that they used the word economic perspective which basically changes everything. Rather than calculating (Contributions - TPPC), they are asking for the difference in real outflow terms i.e how much money could actually be spend to settle the above. So we calculate (Contributions - Periodic Pension Cost) instead of the above, because PPC is what could actually be expensed in the income statement and Contributions are the only actual cash outflow.
If you calculate Periodic Pension Cost as (current service cost + interest expense) you will get the 2562. It is also stated as net retirement expense for the year.
Wrong post