Hi Sir,
I would like to ask when we calculate interest expense or interest income, do we need to include any past service cost, contribution paid & benefit paid at the beginning of the year to calculate the interest cost??
Thank you so much
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5y ago#1Strictly speaking if the adjustment for past service cost was made at the start of the year you were supposed to add that cost to the opening liability before you work out the interest expense. However this is a very small adjustment and I am not convinced that all questions are consistent in their approach.
Dear Sir,
Is that means both ways are acceptable in acca sbr exam either adjust or not adjust it? Which way is much recommended? because I saw the bpp workbook question has adjusted so I was wondering about it.
Thank you
5y ago#3Strictly speaking I would've adjusted it, but I would not expect most candidates to remember!
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