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!