When is pension expense = service cost + interest cost - expected returns and when is pension expense = (the same as above) +/- amortization of unrecognized prior service costs, transition asset or liability, and amortization of and deferal of actuarial gains and losses? Is it always the second one?
it’s always the second one
Concur with maratikus. Under both new and old standards it is the second one.
Yup, what maratikus said is right.
2nd one
Seriously guys? I thought it was only the second one under the old rules…due to the smoothing effects
Nope.
damn your right… I had to look it up…
Just wanted to point out that economic pension expense is Service Fees + Interest + actual return on assets. You might see that question somewhere.
BS, That is a typo right? Service+Interest-Actual return on assets.
^You mean Service + Interest - Actual return on assets
Correct, It should be Service + Interest - actual return on assets
Thanks! I was confusing it with the economic pension expense… definitely will give this section another read…
Economic pension expense is reality (or very close to it), pension expense on the books lives in accounting world.
yep, typo, my bad, I wasn’t paying attention.
the I/S for pre and post 2006 GAAP is same for pension expense. for B/S the post 2006 GAAP mandates declaring the funded status of the pension liab/asset i hope i am correct.
And post 2006, there won’t be any unrecognised costs/assets, so effectively all that stuff will be 0. No?