Final answer:
Actuarial gains and losses are reported as Other Comprehensive Income under both U.S. GAAP and IFRS, which is answer option c. They represent changes in pension plan obligations or assets due to experience adjustments or actuarial assumption changes. The correct option is c. Both U.S. GAAP and IFRS.
Step-by-step explanation:
Actuarial (Remeasurement) gains and losses refer to changes in the present value of the defined benefit obligation (DBO) of a pension plan or the fair value of the plan assets that result from experience adjustments or changes in actuarial assumptions. According to accounting standards, these gains and losses are reported as Other Comprehensive Income (OCI).
The correct answer to the question of whether actuarial gains and losses are reported as OCI under which accounting standards is c. Both U.S. GAAP and IFRS. Under U.S. GAAP, actuarial gains and losses that are not immediately recognized as a component of net periodic pension cost must be recognized in OCI. Similarly, IFRS also requires that remeasurements of the net defined benefit liability (asset), which include actuarial gains and losses, be recognized in OCI as they occur, without subsequent reclassification to profit or loss.
The correct option is c. Both U.S. GAAP and IFRS.