The following facts apply to questions :
XYZ Company,a calendar-year entity,amends its defined benefit pension plan on January 1,2010 and must recognize the increase in past service costs of its vested and non-vested employees as of that date in the calculation of its net 2010 pension expense (or revenue). The pertinent facts as of January 1,2010 are:
-Under IAS 19,with respect to the calculation of net pension expense (or revenue),which of the following components is NOT counted?
A)actual annual return on plan assets
B)current service cost
C)current period actuarial gains and losses
D)past service cost recognized in the current period

Question

Quizplus · Accepted Answer

According to IAS 19, actual annual return on plan assets is counted as a component in the calculation of net pension expense or revenue. However, past service cost recognized in the current period is also a component that must be counted. Therefore, the answer is choice A as it is the only option that is not counted.

The Following Facts Apply to Questions