Prior service cost is recognized on the balance sheet under both U.S. GAAP and IFRS.

Name: Prior service cost is recognized on the balance sheet under both U.S. GAAP and IFRS.
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Question

Quizplus · Accepted Answer

Under U.S. GAAP, prior service cost is recognized in other comprehensive income when incurred and amortized to pension expense over time. Under IFRS, past service cost is recognized immediately in profit or loss for the period in which the plan amendment occurs.

Prior Service Cost Is Recognized on the Balance Sheet Under