allright im gonna share with you a life changing discovery.
alright so you think that Actuarial loss would increase PBO. well you are right.
so you think past service cost would increase PBO. welll… again… you are right.
why everyone is so freakin messed up?
that’s the reaons : under IFRS we take PBO we substract any Actuarial loss from it, substract any past service cost, then value of asset, and here you go you have you B/S liability.
so everyone is loss. god , god! why do i substract it, i read my note and i see INCREASE PBO. god god im so lost i think im gonna cry.
well don’t cry just yet.
PBO include unrecognized past service cost AND unreccognized actuarial loss.
IFRS give you the oportunity to take it back from it to report a smaller liability.
yes actuarial loss increase PBO, past service cost increase PBO. but since it’s already included in PBO, you have to substract it under IFRS