profil

think of it this way. Pension assets of 100 and PBO under GAAP of 185 (hence the 85 underfunded.) 12 actuarial gain needs to be added back to the 185 and the 27 needs to be subtracted. Under GAAP, the gain lowered the PBO and the prior service cost would increase it. Since under IFRS, the adj PBO would be 170 and the asset cost would be 100, so the funded status would change to 70 underfunded.



Edited 1 time(s). Last edit at Monday, May 23, 2011 at 11:13PM by piwanowi.