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Pension Expense (U.S. GAAP)

October 12, 2015

Net Periodic Benefit Costs

+ Service Cost

+ Interest Cost

– Expected return on plan assets

+/- Amortization of actuarial (gains) and loses

+/- Amortization of past service costs


= Pension expense on income statement

  • Interest Cost and Service Cost are actual recurring costs
  • The other three are smoothed events
  • Amortization of actuarial gains and loses and Amortization of past service costs not in IFRS

Unamortized past service cost and actuarial gains and loses go in OCI.

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