Reconcilation of Pension Benefit Obligation its, provide, should, status

ishfaque

Hi guys,
I can’t grasp the idea of PBO funded status reconciliation in IRFS.
With GAAP its is straight forwars: Funded Status (Asset/Liab) = FUND ASSETS - PBO.
With IFRS the funded status should also be the same, but the books say that we need to provide reconciliation. How to?
Thanks!

Muddahudda

it’s pretty straight forward, just add the items that are used to smooth earnings… mainly actuarial gains. Have a look at the financial statements on the EOC questions, there is one on an IFRS company you’ll see that it starts with funded status (USGAAP) and adjusts for actuarial gains and other deferred costs.

Viceroy

I agree with Guille, and if you can cite that question it will make it easier to explain. Just think US GAAP shows the most honest way: just funded status. IFRS cheats a little by “bleeding” these other items in slowly so that their plan looks better