In terms of post-employment benefits,at what point does past-service costs arise?

Question

Quizplus · Accepted Answer

Past-service costs arise when a defined benefits post-employment plan is established or when the plan's benefits are increased. These costs arise from benefits earned by employees in previous years that will be paid out in the future. The employer must account for these costs and ensure there are sufficient funds to pay for them. The other options given do not relate directly to past-service costs.

In Terms of Post-Employment Benefits,at What Point Does Past-Service Costs