I think I’ve finally mastered pensions tonight. pumped! Keep at it everyone, I felt like I would never understand this section but put alot of time into it and it seems clear now.

How much time u put for it?

I put in about 4 hours just this week focused only on pensions. Probably way too much time to focus on one subject but I think we’ll probably get 1 vignett on it, so 5% of the exam. I wasn’t understanding it one bit before and getting 1-2/6 on the mock exam vignettes.

No idea how many hours I’ve put into pensions prior to this week, but not too much more then any other subject.

@bmer4444 and everybody: can u make clear something about accounting for pension obligation (liabilities side of BS) and pension expense under IFRS for me?

  1. Past service cost of unvested employees is deferred until benefits vest. These costs are amortized over the employees’ service lives. (say, this amount is 100, amortized this year is 10). Unrecognized PSC are not included in determining net pension liab or asset on BS.

the question is: what is unrecognized PSC? Is it unamortized PSC (90 in this case) or something else? And if it is not shown up in BS, where we could find it. footnotes …???

  1. Actuarial G/L can be recogzined in full or deferred then amortized. like above, where we could find data reflecting deferred (unamortized) AG/L.

It also states: IF a company decides to recognize AG/L in OCI, they are never reported in income.

So would we amortize that amount in OCI later if cumulative value of AG/L becomes large?

any illustration would be appreciated. all i want to make sure that BS will be balanced :slight_smile:

Thank you.

What did you guys think about mock exam pension questions vs EOC? I’m yet to start a mock, but got around 90% in the EOC - I’m not sure if these questions are the same standard with the mocks though??