canadiananalyst

Economic Pension expense recognizes all expenses recognized during the current year, not just the amortized expense. It does not allow for smoothing of amortizable expenses.
So, it should include not just the amount amortized this year, but all the expenses recognized this year.
For example: If during the current year, Actuarial losses of 100 million were recognized due to change in some actuarial assumption. But, this 100 million will be amortized in the Income statement over the next 10 years at $10 million a year.
Our economic expense calculation (which stands for the true expense) should include all of the 100 million, not just the 10 million recognized this year in the Income Statement.
Regards
Paddy