under the new standards the minimum liability adjustment : ABO > FVPA does not apply… under the old standard it applies. right?
True. Old GAAP ML = FMVPA - ABO New GAAP FS = FMVPA - PBO
Under new U.S standard, there should be no mininum liability adjustment… because you recognized all your loss in funded status on balancesheet.
Dinesh what is FS?
sorry funded statushhhhhheeee
the los in page 201 states that in both standards, if abo exceeds the fair value of the plan assets as least that diff. should be recorded as a lia. just know it…
IMO, ABO should be <=PBO(since ABO doesnt include compensation increases), so all liability is reflected in FS. So there is no more ‘minimum’ liability to be declared separately for the new standards.