Question

All of the following statements regarding the accounting for various forms of compensation plans under IFRS are true except:

a. Remeasurements, under IFRS, are gains and losses related to the defined benefit obligation and gains and losses on the fair value of the plan assets.
b. IFRS does not recognize prior service costs on the balance sheet, but instead expenses them in the current period.
c. Under IFRS, the net defined benefit liability (asset) is the deficit or surplus related to the defined benefit pension plan.
d. IFRS does not separate pension plans into defined-contribution plans and defined-benefit plans.

Answer 1

Under IFRS, pension plans are not explicitly divided into defined-contribution plans and defined-benefit plans.

Step-by-step explanation:

The correct statement among the given options is:

d. IFRS does not separate pension plans into defined-contribution plans and defined-benefit plans.

Under IFRS, pension plans are not explicitly divided into defined-contribution plans and defined-benefit plans. Instead, IFRS focuses on the recognition, measurement, and presentation of pension obligations and related expenses, regardless of whether the plan is defined-contribution or defined-benefit. This is different from other accounting standards, such as US GAAP, which do separate pension plans into these categories.