Dear all,
Require some assistance in understanding the solution to the below problem,
I worked out the answer to be as below which is different from the suggested solution, would appreciate any help greatly!
TPPC = Service Cost + Interest cost - Expected Return on Plan Assets +/- Remeasurements
= 27,000,000 + 3,000,000 - 8,500,000 + 1,000,000 = 22,500,000
where remeasurement = Actual - Expected Return = (7,500,000- 8,500,000) = -1,000,000
I understand that there are differences in US GAAP and IFRS in proportioning the contributors to TPPC but shouldn’t the total value be equal regardless of the accounting method used?
