Question

which of the following statements about the reporting of pension costs under ifrs are true? note: select all that apply. check all that apply service cost includes current service costs and past service costs (if any). service cost includes current service costs and past service costs (if any). service cost includes current service costs, past service costs (if any), and the net interest cost. service cost includes current service costs, past service costs (if any), and the net interest cost. service cost includes current service costs, past service costs (if any), net interest cost, and any remeasurement cost. service cost includes current service costs, past service costs (if any), net interest cost, and any remeasurement cost. remeasurement cost includes remeasurements of service costs caused by changes in assumptions, gains and losses arising from experience differing from what was assumed, and investment gains and losses on plan assets. remeasurement cost includes remeasurements of service costs caused by changes in assumptions, gains and losses arising from experience differing from what was assumed, and investment gains and losses on plan assets.

Answer 1

In IFRS pension cost reporting, service cost includes current and past service costs, and does not include net interest cost or remeasurement costs; these are recorded separately. The correct statements are those that correctly identify the components of service costs and properly define remeasurement costs.

Step-by-step explanation:

When reporting pension costs under the International Financial Reporting Standards (IFRS), one must understand the composition of these costs as they relate to corporate financial statements. The service cost component of pension expense includes current service costs and, if applicable, past service costs. However, it does not include the net interest cost or any remeasurement costs. The net interest cost is presented as a separate component and is calculated based on the net defined benefit liability (asset) and the discount rate. Remeasurement costs, on the other hand, are also reported separately and encompass the remeasurements of the net defined benefit liability (asset) that result from changes in the actuarial assumptions and the return on plan assets, excluding amounts included in the net interest cost.

The correct statements among the options provided are those that include service costs encompassing current and past service costs and the one that defines remeasurement costs as including the remeasurements cause by changes in assumptions, gains and losses arising from experience different from what was assumed, and the investment gains and losses on plan assets. Therefore, only the statements mentioning the correct inclusion of costs in the service cost and the accurate definition of remeasurement costs are true.