Defined Benefit Plan Remeasurement

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May 17, 2015 at 12:20 pm #246550
hazlin23
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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
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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
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Thank you so much.
That was helpful.
Exactly what I was looking for.
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