header bg

Scan QR code or get instant email to install app

Question:

Meyer Company increases the promised payments for all employees in its defined benefit pension plan. Under which financial reporting standards would Meyer recognize past service costs in its income statement for the period?

A IFRS only.
explanation

Under IFRS, past service costs (changes in defined benefit plan obligations that result from a change in the plans terms) are reported as part of service costs, a component of net income. Under U.S. GAAP, past service costs are recognized in other comprehensive income and amortized over time to the income statement.

Comments

Leave a Reply

Your email address will not be published.

*