Under IFRS , the unrealized actuarial gains/losses and the unrealized past service costs are removed from Funded status before presenting on the BS . Giving a much smoother account. Good.( I mean baaaad )
My question is economic pension expense when calculated as change in :
Economic Pension Expense = Employer Contrib - Funded Status
Should use the unsmoothed number ( read US GAAP) or should use the IFRS Smoothed number ?作者: LBriscoe 时间: 2013-3-31 13:12
In the mock they used the GAAP number, but the example specified GAAP.
In any case, I would venture a guess that you should use the GAAP number under all scenarios as economic expense isn’t an accounting term, so there shouldent be two versions…作者: dvilayphet 时间: 2013-3-31 13:13
Funded Status is always the same under both methods. The adjustments to Funded Status under IFRS is not the Funded Status under IFRS, it’s a different measurment entirely (net pension asset/liability).
When calculating the EPE use Funded Status.作者: former 时间: 2013-3-31 13:13
That first part your talking about happens after getting the funded status.
IFRS is PBO-PA=FS -unrealized gains and losses is whats reported on the BS for IFRS. Doesn’t relate to economic pension expense.
Gaap reports FS, IFRS subtracts all the assumptions out before listing on the bs
Economic pension exp is the same.
