Fund status for Employee Compensation

If the funded status is $85M underfunded, and the unrecognized actuarial gain is $12M and unrecognized prior service cost is $27M, what is the amount of the net pension liabilities reported according to IFRS, $70M or $100M?


i think it would be (70) underfunded, which is less underfunded than before b/c IFRS makes things look better, do you subtract that unrecognized actuarial gain and add the unrecognized PSC?

85M-12M+27M = 70M underfunded.

ouch i am wrong…

IFRS requires reporting the net pension asset or liablity after removing the unrecognized gains/losses from the funded status to the extent not yet amortized. I suppose the correct way would be -85 because underfunded -12 (gain would have originally reduced our liability in funded status but since it is not amortized would remove the effect) +27(loss would have increased our PBO but it’s added back for the same reason that it’s not amortized) = -70 (hence underfunded)

100 first of all you should reduce liability by 12 which was gains … to be 73 underfunded ,then you got loss to make it larger to be 100- underfunded i am not sure but i would like to try with you:)

Meshal, double check the work above. The correct answer is 70 underfunded.


anyone else think this questions is sort of asked backwards??? if you start with the underfunded liability of (70) then factor in actuarial gain of +12, then subtract the prior service cost of (27) you arrive at the answer more intuitively (-70) + 12 - 27 = 85