Refer to the situation described in E 17–21.

Data from in E 17-21

Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2024, Lacy received the following information:

The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2024. At the end of 2024, Lacy amended the pension formula creating a prior service cost of $12 million.

Required:
How might your solution differ if Lacy Construction prepares its financial statements according to International Financial Reporting Standards (IFRS)? Assume the actuary’s discount rate is the rate on high-quality corporate bonds. Include any appropriate journal entries in your response.

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Projected Benefit Obligation Balance, January 1 Service cost Prior service cost Interest cost (7.5%) Benefits paid Balance, December 31 Plan Assets Balance, January 1 Actual return on plan assets Contributions, 2024 Benefits paid Balance, December 31 ($ in millions) $360 60 12 27 (37) $422 $240 27 60 (37) $290