Periodic pension cost

[archived_user]

Hi guys,
I`m struggling with periodic pension cost calculations and formula and have the following question.
When looking gto the TPPC formula which is total periodic pension cost formula we have:
current service cost + interest cost - actual return on plan assets (+/-) actuarial gains/losses + prior service cost
Out of this components I`m trying to identify the once which should be reported in income statement. According to the Kaplan Schweser books:
Current service cost, interest cost, expected return on plan assets (for satisfying pension obligation in the future) and prior service cost are reported in the income statement.
However when solving problems the last component (prior service cost) is not included in the Periodic pension cost calculations.
Do you know why?
Thanks many times,
Anush

 

[archived_user]

PPC depends on whether it’s treated under IFRS or US GAAP:
IFRS PPC = Current Service Cost + Past Service Cost +/- Net Interest Income
US GAAP PPC = Current Service Cost + Interest Cost - Expected Return + amortisation past service cost

 

[archived_user]

Pension cost is the same under IFRS and US GAAP.
It’s pension expense that differs.

 

[archived_user]

Hi thanks for replying.
@dazman - where did you get these equivalences. In Schweser Kaplan book it solves a problem with clearly defined past service cost however in pension expense calculations it`s not included neither for IFRS nor in US GAAP?
Thanks many times,
Anush