IFRS & GAAP: Recognizing PAST Service Costs vs Service Costs

CFA Level I
#1

Hi, I am really confused with this topic. Could someone please check if I have this down correctly? These are based on mock exam questions. Is the key word here “past” ?

Past Service Cost: IFRS --> NI ; GAAP --> OCI, amortized over time to I/S

Service Costs for a Defined Benefit Pension Plan: IFRS and GAAP: Expense on the I/S

Thank you!!!

#2

Yes: the key word is “past”.

And you have it right.

Current service costs are expenses on the income statement under both IFRS and US GAAP.

#3

I love you S2000… Thank you for all your help :slight_smile:

#4

My pleasure.

Do me proud on Saturday.