FAR Chapter 7

Question 1

When Olin’s company implemented the plan and Olinto already had10 of the 20 years of service required, what is the entry the Company records?

Answer 1

Dr. OCI (expense not ready for I/S)
Cr. Liability

if the Company increased the % that they’ll pay you
Dr. OCI
Cr. Liability

Question 2

IFRS - what happens if the Company is now giving you a benefit that involved your employment in the past 10 years?

Answer 2

Recognize the entire prior period expense on the current year