IAS 19 vs. FAS158, 132R, 87, etc. versus

The scope is broad and includes wages, vacation or holiday pay, bonus, termination benefits, etc. as well as retirement plans Covers full-time, part-time, temporary staff and directors

If it is defined benefit and information is available, account and disclose proportionate share as though it were defined benefit plan of reporting entity If information is not available, account for it as though it were a defined contribution plan An employer participating in a multiemployer plan shall recognize as net pension cost the required contribution for the period and shall recognize as a liability any contributions due and unpaid.

IFRSUS GAAPComment Defined benefit obligation PBO for pension APBO for other (health) Similar: estimated based on salary at retirement Plan assets Similar Expected return Similar Discount rate Similar Current service costService costEssentially the same Interest cost Essentially the same Ceiling on defined benefit asset n/aNothing comparable in US GAAP Statement of recognised income and expense (SORIE) Statement of comprehensive income Reports portion of changes in net asset/liability not yet recognized in net income

Two options Roughly equivalent to pre- FAS158 GAAP (Assets, PBO, unrecognized amounts netted) with minimum liability or maximum on asset amount Roughly equivalent to post- FAS158 Put unrecognized amounts in equity Report net of plan assets & obligation (in asset or liability section) Net presentation: Plan assets and projected benefit obligation are netted Assets > liability = noncurrent Liability > assets = current and noncurrent classification Unrecognized gains & losses in AOCI No minimum liability requirement

Current service cost Interest cost Expected return and any reimbursement rights Actuarial gains and losses recognized Past service cost recognized Effect of curtailments or settlements Effect of any limit on balance sheet asset Current service cost Interest cost Expected return Amortization of actuarial gain or loss Amortization of prior service cost (and any transition amount) Effect of curtailments or settlements

Very extensive Movement in defined benefit obligation Movement in fair value of assets Amounts charged to operating profits Assumptions Lots more Very extensive Reconciliation of PBO Reconciliation of plan assets Amount recognized in expense Amount recognized on statement of comprehensive income Assumptions Lots more

Measured as the change in liability resulting from plan amendment Recognized on straight-line basis over the average period until the benefits become vested If immediately vested, recognize past service cost immediately Prior service cost = the cost of retroactive benefits granted in a plan amendment Could be recognized immediately but recognition over average remaining service live at amendment is permitted using Years of service method Straight-line method

The rate shall be determined by reference to market yields at the balance sheet date on high quality corporate bonds. Exception for countries where there is no deep market in such bonds – then look to government bond rates The currency and term shall be consistent with the currency and estimated term of the post-employment benefit obligations. Assumed discount rates shall reflect the rates at which the pension benefits could be effectively settled. Look to rates implicit in current prices of annuity contracts including information published by the Pension Benefit Guaranty Corporation. Look to rates of return on high- quality fixed-income investments currently available and expected to be available during the period to maturity of the pension benefits.

The expected return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation. The expected return on plan assets reflects changes in the fair value of plan assets held during the period as a result of actual contributions paid into the fund and actual benefits paid out of the fund. The expected return on plan assets shall be determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. The market-related value of plan assets shall be either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years The manner of determining market-related value shall be applied consistently from year to year for each asset class.

Recognize only if entity is demonstrably committed to either: Terminate employment of an employee or group of employees before the normal retirement date; or Provide termination benefits as a result of an offer made in order to encourage voluntary redundancy (estimate number who will accept offer) Contractual termination benefits are recognized when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. Special voluntary termination benefits are recognized when the employees accept the offer and the amount can be reasonably estimated.

An entity shall recognize the expected cost of short-term employee benefits in the form of compensated absences as follows: 1. Accumulating compensated absences -- when the employees render service that increases their entitlement to future compensated absences 2. Non-accumulating compensated absences -- when the absences occur A liability should be accrued if all of the following conditions are met: 1. Obligation is attributable to past services 2. Rights vest or can be accumulated 3. Payment is probable 4. Amount can be reasonably estimated