Pension

Question 1

What is the most significant accounting difference between IFRS and US GAAP for pension

Answer 1

AMORTIZATION of:

1. Remeasurements - Actuarial Gains & Losses due to
   (a) assumptions
   (b) actual returns on plan different to expected return
2. Prior service cost

Question 2

What are the two types of pension cost that can be amortized under US GAAP

Answer 2

1. Remeasurements

2. Past service cost

Question 3

Under IFRS what costs are permitted in OCI

What happens next?

Answer 3

1. Remeasurements

2. No amortization permitted - To balance sheet