Total Periodic Pension Cost vs. Periodic Pension Cost

[sgshackle]

Can anyone better explain this than Kap/CFAI?
How I am seeing it is TPPC is the net change in the balance sheet (A or L) and periodic pension cost is what goes on the I/S?
I’m currently in a black hole on this reading…thanks for any help

 

[joe35y]

From my understanding TPPC is what is disclosed in the footnotes. Periodic pension cost is what shows up in your I/S as the actual expense line item.
TPPC = Employer’s Contributions - [ Ended Funded Status - Beginning Funded Stats]
Beginning Funded Status = Beg. Plan Assets - Beg. PBO
Ending Funded Status = Ending Plan Assets - EndingPBO
Your actual pension I/S loss changes depending on GAAP or IFRS.
GAAP:
Service Costs + Interest Costs (PBO * discount rate) +/- Expected Return on Plan Assets +/- Amortize Gain +/- Past service costs (*cordor approach)
IFRS:
Service Costs +/- Net interest expense (beg funded stats * discount rate) +- past service costs
*Corrdor approach = amortize over the remaining service life if Past service cost is greater than 10% of the beg PBO or Plan Assets
Correct me if I’m wrong anyone else.

 

[sgshackle]

So, TPPC = periodic pension cost reported in I/S + periodic pension cost reported in OCI
Where I am getting confused is the afternoon session of the CFAI mock - question 23 and 24
#23 has the periodic pension cost as $2,267 and #24 has the total periodic pension cost as $704…
Though we weren’t asked to calculate and may not have enough info - coneceptually would that mean that costs reported in OCI would be -1,563 (aka a gain?)
$704 = $2,267 + (-$1,563)

 

[Flashback]

Although, TPPC are called costs there are also items which deduct costs. There may be gains instead of losses in actuarial assumptions and actual return on plan assets.