Roswell-

Can you please give me some background how the pension works?

So SIRAGE helps you to calculated Net Periodic cost can you explain movement of each of these as in part of asset/liability/oci/income statement movement?

I am very confused.

Thanks,

Thank you so much for making it easier.. I am planning to look at it first thing morning and would surely let you know if further questions..

Your fundamernatls are very strong all the best for the test.

Roswell-

I have following questions about pension now:

1 Return on plan assets: We are adjusting interest cost for expected return? Should we not adjust for the diff between actual return and expected return? Am I missing something here?

2- Prior service cost that gets amortized is the result of cost which hit OCI in past and so JE would have been OCI DR and Pension Benefit liability credit .

If it is given in questions that we need to adjust for such amounts in current year we need to do so right?

3- Amortization of Gain and loss also I have same question.

4- And whenever they are asking question about what is the balance of Pension benefit asset or liability it is same as funded status?

Alternatively we can calculate as:

1- PBO - FV of plan assets at the beginning

Adjust for Service, Interest and Return on plan assets (pre tax) as tax effecte goes to Deferred tax asset/ liability

Adjsutment for AGE items incurred during year and not amortized

And Contributions if made any.

I would really appreciate clarification on these topics.

TIA