So we are saying if the past service cost and acturial gains and losses exceed 10% of greater of (1) PBO or (2) Market valude of assets, we amortise.
If it is less than 10%, we defer.
My question is, am I correct that in no circumstance do we simply apply the following calculation?
Current Service Cost
+ Interest Expense
- Expected Return on plan assets
+/- Past Service Cost
+/- Acturial Gains and Losses作者: FinancialAnaly 时间: 2011-7-13 15:20
I would apply the following equation unless otherwise it is specifically noted in the question. I do not remember this being an issue on the EOC questions..and that they would give you the amount that is being amortized for the actuarial gains/losses.
I believe the whole thing with the corridor method could be trivial pursuit question, and not something they would have you calculate.
