Acct hwk 17-18

Acct hwk 17-18 - 3. Under the IFRS, reporting the actual...

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Vicki Collier July 25, 2011 Exercise 17-18 1. A decrease in the discount rate from 7% to 6% increases the projected benefit obligation. The lower the discount rate in a PV, the higher the present value. It is reported as a loss when the obligation increases. 2. Loss (OCI)………………………………………………………………. . 7,000,000 PBO…………………………………………………………………………… 7,000,000 According to U.S. GAAP, the company will report the loss would be included with the OCI items in the statement of comprehensive income, and then become a part of the ACOI.
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Unformatted text preview: 3. Under the IFRS, reporting the actual gains and losses among the OCI in the statement of comprehensive income is permitted but not required. Another alternative would be to include the gains and losses as they occur. And in this case the journal entries would be the same or Loss (income statement).13, 000,000 PBO13,000,000 And then the loss would be reported in the income statement.*...
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