标题: Fund status for Employee Compensation [打印本页] 作者: morebeans 时间: 2011-7-13 13:12 标题: Fund status for Employee Compensation
If the funded status is $85M underfunded, and the unrecognized actuarial gain is $12M and unrecognized prior service cost is $27M, what is the amount of the net pension liabilities reported according to IFRS, $70M or $100M?作者: flyinggirl 时间: 2011-7-13 13:12
i think it would be (70) underfunded, which is less underfunded than before b/c IFRS makes things look better, do you subtract that unrecognized actuarial gain and add the unrecognized PSC?作者: senlinlang 时间: 2011-7-13 13:12
IFRS requires reporting the net pension asset or liablity after removing the unrecognized gains/losses from the funded status to the extent not yet amortized.
I suppose the correct way would be
-85 because underfunded
-12 (gain would have originally reduced our liability in funded status but since it is not amortized would remove the effect)
+27(loss would have increased our PBO but it's added back for the same reason that it's not amortized)
= -70 (hence underfunded)作者: liquidity 时间: 2011-7-13 13:12
ouch i am wrong...
Edited 2 time(s). Last edit at Wednesday, May 25, 2011 at 03:36AM by passme.作者: smuggycfa 时间: 2011-7-13 13:12
100
first of all
you should reduce liability by 12 which was gains .. to be 73 underfunded ,,,then you got loss to make it larger to be 100- underfunded
i am not sure but i would like to try with you作者: ppls 时间: 2011-7-13 13:12
Meshal, double check the work above. The correct answer is 70 underfunded.作者: ayaz_mahmud369 时间: 2011-7-13 13:12
anyone else think this questions is sort of asked backwards???
if you start with the underfunded liability of (70) then factor in actuarial gain of +12, then subtract the prior service cost of (27) you arrive at the answer more intuitively
(-70) + 12 - 27 = 85
