Question
IFRS explain please the calculation A) Assume the pension liability from January 1, 2015 is increased to SEK 300.000 at the end of year 3
IFRS explain please the calculation
A) Assume the pension liability from January 1, 2015 is increased to SEK 300.000 at the end of year 3 because the employee has negotiated more pension at the end of year 3. Using a 5 percent discount rate the present value of the pension liability at the end of year 2 increases to SEK 190.476 and at the end of year 3 is SEK 300.000. What is the current service cost in year 2 and 3 using the projected unit credit method?
B) The same example as in part a, but now we assume the increase in pension liability from January 1, 2015 is due to a salary increase. The pension liability from January 1, 2015 will increase to SEK 300.000. Using the same discount rate as previously, the present value of the pension liability at the end of year 2 increases to SEK 190.476 and at the end of year 3 is SEK 300.000. What are the current service cost and the adjustment of OCI in year 2?
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