IFRS - was it A the full liability that goes on the balance sheet? and over and underfunding in equity?
Balance sheet - but had to back out unrecognized items.
so what was the answer?
THEREIN lies the answer
I honestly thought that question was a mistake. For IFRS you have to adjust funded status for unrecognized items yet I tried a number of ways and couldn’t get the answer. Was anyone able to reconcile?
wasn’t the number sitting right there??? one of the options was “funded status” and clearly that wasn’t it. But then funded status taking account for adjustments was just sitting there for us
I was able to reconcile. Funded Status = Balance Sheet amount I think that’s all I had to do
The Pension footnotes were listed there…not the balance sheet. From funded status you deduct all the unrecognized items and that number goes on the balance sheet.
The net pension asset or liability is the funded status, adjusted for any unrecognized past service cost or unrecognized actuarial losses or gains. I got to the answer by subtracting the two unrecognized loss amounts from the funded status (or adding the gains - I don’t remember which one). But that amount goes onto the balance sheet. I think that they did the math on the exhibit - they listed the funded status, the unrecognized amounts, and the total right below the unrecognized amounts.
You have to add the losses back in because GAAP takes them out
It was a B/S using IFRS. IFRS does not use the words Funded Status, it use something like penision prepaid (Accrued) blah blah. That was listed in teh table (something like 1880), that’s the liability. The funded status is the full liability/asset, no need to add or subtract anything. Funded Status_IFRS = Funded Status_GAAP +/- adjustments, so it was already adjusted. That’s what I did anyway.
I do not remeber whether it was A/B/C, but it was funded status plus the adjustments. It was given in one of the exhibits.
I answered this one at first missing the reference about IFRS. I used Funded Status. Then at the end, I went back and reread the exam and happened to catch the IFRS reference. The answer was given right in the item set, but it was the subtotal below the Funded Status, removing the Unrecognized amounts for actuarial and past service cost. Prepaid (accrued) Pension Cost. That last minute review may have been the best 5 minutes I have ever spent on an exam…
I saw the adjustment on the balance sheet so i picked that. I think it was -1806 (A).
the answer was A … you could pull it str8 from the exhibit in the vingette
It was 1,xxx, the PBO was like 4,xxx (this is what would have been on a GAAP prepared BS, very obvious distractor since they told you the company uses IFRS).
“I was able to reconcile. Funded Status = Balance Sheet amount I think that’s all I had to do” Cosign; think the funded status was 4K and some jingles, and the right answer (in my view, anyways) was 1800 and some.
yeah, that was softball if you new the difference between Gaap and IFRS. no work needed