Ok, so you do 10% of the larger of the two… PBO or plan Assets. You don’t look at PBO as a negative (liability) correct? You just look at it as a number. So PBO is $89. and Plan Assets = $70. You would take 10% of PBO, which is $8.9.
Then, you subtract this “corridor” number from the Beginning Unamoritzed Net Loss. Will this number be given or do we need to calculate it?
The remaining number will be the amount that you divide by the remaining life, and then put into the Income statement under actuarial loss. The remaining life used for Amort. past service costs and Amort. Actuarial losses is always the same correct?
Also, the difference between the total past service costs - the amount amortized = remaining unrealized part that will go to OCI>
WHY THE H*** IS GAAP SO MUCH MORE CONFUSING THAN IFRS. WHEN GAAP IS ALREADY BS SINCE you can use “expected return.” DB plans are a disaster as a whole in the US.
Can someone please verify what i said was correct?
Thank you!