Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Defined Benefit Plan Remeasurement

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Defined Benefit Plan Remeasurement

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • May 17, 2015 at 12:20 pm #246550
    hazlin23
    Member
    • Topics: 4
    • Replies: 4
    • ☆

    Question: Glove June 2007
    Gains on remeasurement of Defined Benefit Plan Asset = $900K

    Loss on remeasurment of Defined Benefit plan obligation = $1000k

    Requirement: Treat the transaction above based on IAS19, revised 2011.

    Answer:

    Offset the gain and loss$100k ( 1000k-900k)

    Journal Entry:
    Dr OCI $100k
    Dr Net Defined Liabilities. $100k

    My question is, what is the latest standard treatment of the above transaction? I’ve answered similar question where the treatment of the gains and losses from the remeasurement is charged directly to the Income Statement, not the Other Comprehensive Income.

    May 19, 2015 at 12:57 pm #247170
    Gaelle
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    Hi, i hope am not too late.

    Remeasurements i.e actuarial gains/losses are classified in OCI. They are NEVER recycled to the P/L.
    To note: Some books call SoP/L and OCI the Income statement as it used to be called in 2007 so this might be normal but the latest a/c treatment of the above is just as you did.
    Dr OC! $100
    Cr C/Liabilities (DB Liabilities)

    I hope i was helful

    May 24, 2015 at 8:29 pm #248616
    hazlin23
    Member
    • Topics: 4
    • Replies: 4
    • ☆

    Thank you so much.
    That was helpful.
    Exactly what I was looking for.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.