Pension Accounting - GAAP vs. IFRS summarized

[fullofquestions]

Guys, I’ve looked around the forum and found a few different discussions about this topic, most prominently this, http://www.analystforum.com/phorums/read.php?12,1251148,1263134#msg-1263134
While it may be clear to most, after reviewing different sources, I don’t think I am 100% clear about pension accounting. Would anyone who is absolutely sure about this topic please comment? I would like to capture and summarize the details as opposed to creating yet another discussion (if possible). Perhaps we can make this the single ‘review’ thread on this.
As I understand it, this is how GAAP and IFRS both account for pension accounting:
BENEFIT OBLIGATION
Beginning PBO
+ current service cost
+ Interest cost
+ Plan amendments
+- Actuarial (gains) and losses
– Benefits paid
= ending PBO
FAIR VALUE OF ASSETS
Beginning fair value of plan assets
+ Actual return on plan assets
+ Contributions
– Benefits paid
= ending fair value of plan assets
PENSION EXPENSE
current service cost
+ Interest cost
– expected return on plan assets
+- Amortization of actuarial loss(gain)
+- Amortization of prior service cost(benefit)
= Net periodic benefit expense
DIFFERENCES BETWEEN GAAP AND IFRS
1. GAAP shows only a single line item for pension expense in the Income Statement, whereas IFRS can list a single line item or list its components
2. GAAP shows the funded status as the net pension asset/liabiltiy in the Balance Sheet. This funded status is simply PBO – Fair Value, i.e. there are NO adjustments for unrecognized items. IFRS lists the net pension asst/liability in the Balance Sheet as the funded status which can be described by the formula below:
Funded status (fair value of plan assets – PBo)
± Unrecognized deferred (gains) and losses
+ Unrecognized past service cost
± Unrecognized transition (asset) or liability
= Net pension asset (liability) reported on the balance sheet
3. are there any more?
Last question, and I know this kind of violates the desire to keep this lean, but, do any of you have some good examples that illustrate the correct way to add/subtract the various amortization, actuarial gains/losses/costs/benefits?
thanks (I hope this summary is close to correct)
Questions:
1. In the fair value of assets

 

[fullofquestions]

Disregard the last two lines in my post. For now, I found an example that could be used to supplement my question.
Take as a given that:
-company is reporting using IFRS
-PBO ending is 5000 and Fair value of assets ending is 4000
-unrecognized past service cost is 300
-unrecognized actuarial gains is 500
What is the funded status?
Answer given is: 4000 - 5000 + 300 - 500 = -1200, therefore a pension liability of 1200.
My question relates to how the cost and gains are accounted for. What exactly does ‘unrecognized past service cost’ mean?
1. is this a cost that was never paid for, therefore, never reported anywhere and now it needs to be paid/reported? Clearly, this is not it, because if that were the case, this item would be subtracted… How can you have a cost that is never reported?
2. is this a cost that was paid for and never reported? In this case, since this cost needs to be accounted for, it becomes an item that you add to your status. How can you have a cost, that you paid for somehow, but never reported?
I know this will start a discussion so I guess I pooed on my goal. Anyway, if anyone has a good resource on this I would appreciate it. Thanks a ton.