Under IFRS, Pension expense = service cost + net pension liability (asset)* discount rate TPPC= contribution -(ending funded status- beginning funded status) fs=assets -pvdbo Is the above two formulas correct? Tx
Under ifrs pension expense includes current service cost+past service cost+interest expense(o/p pbo *discount rate -o/p plan assets*discount rate)
tppc includes both p&l expense ie above 3 items and oci items ie acturial gains&losses and also difference b/w actual return and o/p plan assets*discount rate
another way to find out tpcc=ending funded status-employers contributuon-o/p funded status.
Are these above formulas of mine correct?
The first formula is correct service inckudes both current &past.
the second formula i think the signs are incorrect just use the one i mentioned above.