I think a lot of ppl are finding this very confusing, what is the diff between TPPC and periodic pension cost? they both go to the income statement and i do know TPPC use actual return on asset and periodic pension cost use expected return.
They have different formulas too:
TPPC = Contribution - (change in funded status)
TPPC = ending PBO - Beg PBO + benefits paid - actual return on assets
TPPC = current service cost + interest cost + past service cost +/- actuarial g/l - actual return
GAAP periodic pension cost: service cost + interest cost +/- amortization of past service cost - expected return on assets
IFRS periodic pension cost: service cost + past service cost + net interest expense
Also, in every single example in schweser, when asked to calculate GAAP periodic pension cost, they always ask you to ignore amortization so there is not a single example explaining how to do the math with amortization. I supposed they think its unlikely to appear in the exam.
Any help would really be appreciated, have seriously no idea what is going on here…