Expected Return on Assets

[MissCleo]

So what does this actually affect? Is it only in GAAP where it reduces pension expense if its higher? Has no rule in IFRS?

 

[MissCleo]

Also one more quick one if we are looking for the status of the plan on the balanace sheet, for GAAP it would just be the funded status, while for IFRS it will be funded status + unamortized losses + past service cost unamortized?

 

[Stevie Ray]

Impacts both GAAP and IFRS on the I/S
For IFRS, it is netted out with interest expense as both use the same rate (discount rate).
For GAAP it is a separate rate from the discount rate, so you will see on the I/S both the interest cost and the expected return.

 

[MissCleo]

Ah so the interest cost would be Plan assets x expected return with GAAp, and under actuarial gaisn with teh difference between expected an actual x plan assets?