In regards to pension expense, what are the pros and cons of a company immediately expensing the expense vs accounting for it in other comprehensive income.
As a follow up what is the effect of being able to amortize the oci expense?
The primary advantage of putting some of the expense in OCI and amortizing it is that it smooths the pension expense year to year.
The primary disadvantage is that it doesn’t accurately portray net income year to year.