I know that when adjusting a GAAP income statement, we would add back service & interest cost to EBIT, and subtract expected ROA. Then we would subtract service cost ONLY & that would get us adjusted EBIT. My question is- I think in the example I came across there were NO given amortization of past service costs (and or actuarial losses). If those were given as say 100 in amortization of past service costs (meaning we see on the given income statement that that 100 was an operating line item on the IS).
Am I correct in that it is the case that since GAAP generally balls up all the components of the pension expense into 1 big line item, that we WOULD indeed have to do exactly what I described above, including any amortization adjustments if they were indeed given?
Thanks,