FRA- Pension

CFA Level I FRA
#1

Hi guys!
Question 9 in Wiley books asks to about the periodic pension cost under IFRS,
my understanding is that its based on current service cost + past service cost+ interest.

interest is calculated based on BGN net funded status * discount rate.

in the solution, Interest is calculated as (BGN plan assets +past service cost - BGN benefit obligation)* discount rate,

Q: why did we add back past service cost?

#2

Because it’s past service cost, so it’s an adjustment to the beginning plan liabilities.

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