"Under US GAAP past service costs are reported in other comprehensive income.....In subsequent periods, these costs are amortized over the average service lives of the affected employees and reported as a component of pension expense."
Trying to figure what the corresponding accounting entries would be:
1. past service costs are reported in other comprehensive income : Pension liability increases and equity (accumulated OCI) decreases by the same amount. is this correct??
2. In subsequent periods, these costs are amortized and reported as a component of pension expense : if (1) above is correct, what will be the corresponding accounting entry for this step?
Thanks!
Edited 1 time(s). Last edit at Friday, March 4, 2011 at 08:55PM by oz001.作者: tobeornottobe 时间: 2011-7-11 19:19
i am confident that CFAI wont ask you the accounting entries, although they are helpful for understanding the material, dont spend too much time on it.
i cant confirm without doing more research but it looks intuitive enough for me.
