Hello
A gain or loss on settlement arises. How actually does this gain or loss arises?
The gain or loss on settlement is the difference between the FV of the assets paid out and the reduction in the PV of the defined benefit obligation. What does this mean?
Thanks
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IAS 19
2y ago#1You are a pensioner. I am a big bad employer.
The plan owes you 100 (but the jargon is so complex that you don't really understand it).
The employer gives you 90 to go away.
Gain of 10 arises.
:(
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