Differences Between IFRS and U

Differences between IFRS and U.S.GAAP in accounting for pensions include all of the following except:

A) Under U.S.GAAP the asset (liability) on the balance sheet differs from the plan's actual funded status,while under IFRS the asset (liability) on the balance sheet equals the plan's actual funded status.
B) Under IFRS past service costs are recognized immediately as part of pension expense.
C) Under IFRS actuarial gains and losses are recognized in OCI without subsequent amortization to pension expense.
D) Pension expense computed using U.S.GAAP is likely to be higher because it allows firms to use an expected rate of return that exceeds the discount rate.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free