09-12-2007, 04:18 AM
Someone plz explain why we are taking unrecognised 'losses' and 'service cost' and comparing them with Farivalue of asset...
these are items with nature of expense.......why do we add them to
present value of economic benefits which seem to be of nature of an asset....?
PARA 58
The amount determined under paragraph 54 may be negative (an asset). An
entity shall measure the resulting asset at the lower of
(a)the amount determined under paragraph 54; and
<font size="2">
(b)the total of
(i)<font color="red">any cumulative unrecognised net actuarial losses and past service cost
(see paragraphs 92, 93 and 96); and
(ii)the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.</font id="red">
</font id="size2">
PARA 54
The amount recognised as a defined benefit liability shall be the net total of the
following amounts
(a)the present value of the defined benefit obligation at the balance sheet date
(see paragraph 64);
(b)plus any actuarial gains (less any actuarial losses) not recognised because of
the treatment set out in paragraphs 92 and 93;
(c)minus any past service cost not yet recognised (see paragraph96);
(d)minus the fair value at the balance sheet date of plan assets (ifany) out of
which the obligations are to be settled directly (
these are items with nature of expense.......why do we add them to
present value of economic benefits which seem to be of nature of an asset....?
PARA 58
The amount determined under paragraph 54 may be negative (an asset). An
entity shall measure the resulting asset at the lower of
(a)the amount determined under paragraph 54; and
<font size="2">
(b)the total of
(i)<font color="red">any cumulative unrecognised net actuarial losses and past service cost
(see paragraphs 92, 93 and 96); and
(ii)the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.</font id="red">
</font id="size2">
PARA 54
The amount recognised as a defined benefit liability shall be the net total of the
following amounts
(a)the present value of the defined benefit obligation at the balance sheet date
(see paragraph 64);
(b)plus any actuarial gains (less any actuarial losses) not recognised because of
the treatment set out in paragraphs 92 and 93;
(c)minus any past service cost not yet recognised (see paragraph96);
(d)minus the fair value at the balance sheet date of plan assets (ifany) out of
which the obligations are to be settled directly (
