Persoff Industries International Has a Defined Benefit Pension Plan

Persoff Industries International has a defined benefit pension plan. The company revised its estimate of future salary levels causing its defined benefit obligation to increase by $16 million. Also, Persoff's $25 million actual return on plan assets exceeded the 5% high-grade corporate bond rate times the $440 million plan assets. Persoff prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) . The company will:

A) Record a $3 million decrease in its plan assets.
B) Record a $16 million gain-OCI.
C) Change an amount in the equity section of the balance sheet to be subsequently amortized to pension expense.
D) Change an amount in the equity section of the balance sheet that will never be amortized to pension expense.

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