2012 mock pm Q16: Pensions

For those of you who did the 2012 mock.

Exhibit states company is changing policy of defferring actuarial gains and losses and instead recognize them as they arise. Company follows IFRS.

data after the revaluation with the change in policy:

PV of defined benefit obligation: 45200

Fair Value of plan assets: 29522

Unrecognized actuarial losses: 4250

Unrecognized past service costs: 433

So the question wants to know, after revaluation, the net pension liability reported.

According ot the answer because IFRS doesn’t recognize past service cost, you have to take it out of the liability. So 45200-29522-433 = the net pension liability.

Please correct me if I’m wrong, but doesn’t IFRS recognize total service cost and GAAP only current service cost? If someone can explain the answer to me I would much appreciate it…Thanks so much!

The pensions chapter is different in 2013. Don’t confuse yourself with these questions.

Pensions has changed significantly in 2013. It was made much easier, do not touch old pension questions.

oh phew, thanks again guys.