19831985

we can just save ourselves a lot of time by accepting the following as IFRS's formula for a Defined Benefit Asset:

Fair Value of Plan Assets
+ unrecognized actuarial losses (or less unrecognized gains)
+ unrecognized past service cost
+ unrecognized transition liabilities (or less gains)
– Defined Benefit Obligation from B.S.
= Defined Benefit Asset (negative value is a DB Liability)

If the figure is indeed an Asset, IFRS requires the company to report the lower of that item, or this one here:

Unrecognized net actuarial losses
+ unrecognized past service cost
+ PV of any economic benefits available in the form of refunds or plan reductions in future contributions to the plan (from what I understand, this = Plan Assets - DBO)
= DB Asset

IFRS further states that if the bottom thing is the lower item, you have to post the difference between this item and the upper item in the footnotes, though the text doesn't say explicitly what you post it as, only that the difference is posted there.

GAAP seems easier to me in this topic by just not allowing the unrecognized losses/gains to be deferred. the key to me understanding what is going on with this stupid formula has something to do with deferring those expenses and that somehow being an asset (I think, obviously not too sure tho).

I know what to do, I'm just not sure why it's being done.