U.S.GAAP and IFRS requires the recognition of changes in the plan assets or benefit obligations in measuring pension or other benefits expense as those changes occur.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, changes in the plan assets or benefit obligations are not immediately recognized in pension expense but are instead recognized over time using various smoothing techniques. IFRS, on the other hand, requires immediate recognition of some changes in the net defined benefit liability (asset) in other comprehensive income, not in profit or loss.

USGAAP and IFRS Requires the Recognition of Changes in the Plan