Question
IFRS please explain Assume the pension liability from January 1, 2015 is increased to SEK 300.000 at the end of year 3 because the employee
IFRS please explain
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. Assume the number of years of service is three years and the pension liability at the end of year 3 is estimated to SEK 270.000. Using a 5 percent discount rate the present value of the pension liability at the end of year 1 is SEK 81.633 and at the end of year 2 is SEK 171.429 and SEK 300.000 at the end of year 3. In year 2 the discount rate decreases to 3 percent. The present value of the pension liability at the end of year 2 is SEK 174.757. What are the current service cost, the interest cost and the adjustment of OCI in year 2?
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