Did you know that....for IFRS

For pension accounting…IFRS differences: 1. acturial gain/loss be amortized over employee SERVICE LIFE not life expectancy (like US). 2. prior service cost is EXPENSED not deffered and accumulated (like in US) 3. IFRS do not require a minimum liability (AB0>FMV) like the US. Ok, i hope everyone remembers this…just in case!

I think this will be on the exam for sure.

They also use the old US standards wrt funded status vs npl

  1. IRFS still uses old standard for reporting liabity

IFRS can suck a fat one.

Yes IRFS sitll uses old standard. But they no longer use the pooling method and have changed just like the US to purchase method. I got that question wrong on book 6 2am i think.

Lady and Gentlemen, your post of the day: Sponge_Bob_CFA Wrote: ------------------------------------------------------- > IFRS can suck a fat one.

I beleive that US GAAP no longer reports the Minimum Liability. I also enjoyed the “suck a fat one” comment.

Is the company required to recognize a minimum liability under the old-US standards or the new standards? I thought it was under the old.

both. Although under the new standards there is no circumstance I can think of in which it would be necessary. PBO>ABO and PBO is already on the bs.

I don’t see any LOS pensions which states we need to know differences b/w US and IFRS…

US has to recogonize a minimum liability…but not international standards. (see my pt #3) min liability is if ABO>FMV, i dont think it has to do with ABO vs PBO.

Kellyc, are you using Schweser? There was an errata on page 201 of the FSA book, that changes the wording under the Min Liability Allowance to “In order to partially compensate for this smoothing, the old standards required tat if the ABO exceeds the fair value of plan assets, at least that difference must show on the BS as liability.” I saw this errata yesterday, but then it contradicts what you say which is stated on page 207…

Yes those are under US standards…min liability allowance has to show up on the balance sheet. But i’m saying that international standards doesn’t need to show up. R u talking about US or international standards? Yes, im using schweser.

I understand what you’re saying, but per the errata, the min liability had to be reflected in the OLD standards, not the NEW standards… I just went to the CFA books and they don’t make a distinction, so I’m just going to disregard my comment…