Periodic pension cost vs periodic pension expense

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Raghavsrini

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Can someone explain the difference between total periodic pension cost and periodic pension expense??
 
The periodic pension expense is what the company shows in the income statement. The total pension cost is the total cost for the year, part of it is shown in the IS and part of it in OCI. Total pension cost is same under both IFRS and US GAAP, periodic pension expense differs.
 
Hi,
Pension Expense is a subset of Pension Cost.
Pension Expense is what the Company is showing on the IS whereas teh Pension cost is the economic Pension Expense.
 
Total periodic pension cost refers to pension cost in the income statement and equity (Other comprehensive income).
Periodic pension cost refers to only the pension cost in the income statement.
 
I have read the material, the “Dumbed Down Pension Understanding” that was posted in another thread, and all of the posts above but am having a bit of dificulty understanding on this topic. I liked how you described Pension Expense as a subset of TPPC (those parts of TPPC recognized on the IS vs. OCI on the Bal. Sheet). That made a lot of sense to me until I got to the part of adjustments and how increasing the expected rate of return on planned assets will decrease the Pension expesnse. That part actually makes sense to me just from lookign at the equation, but the material states that it will not have an affect on TPPC? If, Pension expense is in fact a subset of TPPC, then wouldn’t we expect to see the Pension Expense and TPPC decrease while OCI on the BS would not be affected?
 
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