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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Chapter 12: Pensions (IAS 19) – Example
Hi Sir,
Why is it that in example 1 of the defined benefit scheme (under chapter 12), the opening balances of assets and liabilities were used to arrive at the ROI and interest expense respectively? Why is it not the closing balances or maybe the average? Thank you!
It’s a rule – pretend that you are investing the OPENING balance at the OPENING interest rate.
Thank you for the clarification, Sir!
🙂