Rasec

Iginla2010 Wrote:
-------------------------------------------------------
> It should be 70.
>
> IFRS is a smoothed number, so remember under IFRS,
> it will be a smaller number compared to the number
> under US GAAP, which is the net funded status.
> Hence, more volatile reporting under US GAAP
> because small movements in the components of Plan
> Assets or PBO cause big movements in the funded
> status.
>
> So intuitively, if the plan is overfunded
> (assets>PBO), it will be a smaller (+) number
> if the plan is underfunded (PBO<assets), it will
> be a smaller (-) number
>
> Now, back to the equations and formulas -
> if it's a cost: add back
> if it's a gain: subtract
> to get a smooth number for IFRS
>
> Hope this helps

It should be 100, not 70.

85 - 12 + 27 = 100

You cannot make any assumption about the size of the amount. It depends on unrecognized G/L, not 'smoothing effect'.



Edited 1 time(s). Last edit at Tuesday, May 24, 2011 at 05:51AM by zestzorb.