Pension costs in P&L - IFRS OCI items

Hi Guys

Quick question, I just did a question which stated that Net return on plan assets is reported under OCI in IFRS, however I don’t see this in the Schweser book. In the Schweser curriculum, only actuarial gains and losses are reported under OCI for IFRS.

The formula used for ‘Net return on plan assets’ presented in the answer was:

Actual return - (Plan assets*interest rate)

I haven’t come across this formula in Schweser - can you please help me understand this…




My understanding is the Actuarial G/L has 2 components

  1. G/L Changes due to changes actuarial assumptions

  2. Difference between expected return on plan assets and actual return

Also remember that IFRS implicitly uses the discount rate to calculate expected returns

Just confirmed this ish is on page 42 of the 2017 Schweser book