Question
11. An entity uses IFRS to prepare its financial statements but the defined benefit obligation has been calculated using assumptions that are different from IFRS.
11. An entity uses IFRS to prepare its financial statements but the defined benefit obligation has been calculated using assumptions that are different from IFRS. How should the entity measure its net pension liability?
A The net present value of the defined benefit obligation less the fair value of the plan assets
B The net present value of the defined benefit obligation, less the fair value of the plan assets, less the unrecognised past service costs. A review of the assumptions should also be undertaken to measure the obligation again
C The net present value of the defined benefit obligation, less the fair value of plan assets, less the unrecognised past service costs
D The value in the balance sheet will simply be used in the consolidated financial statements
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