IAS19 Employment benefitsForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS19 Employment benefitsThis topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts July 2, 2021 at 3:54 am #626816 mokoaleliMemberTopics: 1Replies: 0☆Good day,Please explain to me how to treat the interest cost related to past service cost in defined benefit plan. Do we also need to adjust the contribution in calculating the liability?Kind regards July 2, 2021 at 5:53 am #626824 Stephen WidbergKeymasterTopics: 16Replies: 3411☆☆☆☆☆Don’t adjust the contribution – that is the cash which you never adjust.Normally NIC is opening interest rate x opening liability.Exception – if the past service cost takes effect from the START of the year:Then NIC is opening interest rate x (opening liability + increase in liability due to past service cost)AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In