Why total pension cost is the same using GAAP and IFRS?

CFA Level II Quant
#1

The notes says both under IFRS and US GAA, the total pension expense in for that particular period/year is the same.

However my problem US GAAP and IFRS treat pension expenses differently - amortising some expenses, packing the in OCI etc depending on the method. Why then should the pension expenses in accounts under IFRS be equal to one under US GAAP. See formulas for pension expenses below: ( i dont dispute that over the term of the pension life say 20 years, the two should match but i dont understand why year on year the two should be the same. Could someone explain please?

Under

IFRS Pension Expense = [Service Cost + Net Interest Exp + Past Service Costs] in P&L + [Actuarial Gain/ Losses] in OCI.

GAAP Pension Expense = [Service Cost + Interest exp- Exp returns +amortised Past service costs + amortised Actuarial gains/losses] in P&L + [unamortised Actuarial Gains/Losses & past services costs] in OCI.

#2

Cant understand what you are asking.

#3

I have rephrased my question hope this helps.

#4

Total periodic pension costs under both method will be the same. Periodic pension cost (pension expenses) will be different.

#5

take this way… if there is past service costs of $100 in year one. IFRS will expense $100 in year 1 and no costs in year 2.

US GAAP will expense say the amortisation period is 10 years, they expense $10 in year 1, and $10 in year 2.

Obviously year 1 to year 10 expenses will be different between the methods. OVER 10 YEARS THE COSTS WILL BE THE SAME. The curriculum instead says the total expenses for year 1, year 2…will be same (year on year) and this is what i query…