[theeluce]

I need to rant and would like some clarification.

The Becker clearly says you can use actual OR expected to calculate the pension expense. (although most use expected)

In a practice question however they did not clarify on which one to use and the correct answer was obtained only by using the expected. They gave both expected and actual rate which I know the difference goes to OCI and is amortized using the corridor approach. (which ALSO it says you can recognize the entire G / L in period incurred so wtf!!!)

I just think it’s ridiculous that they expect you to use the expected rate because “most use this.” The questions really should be more clear.

Is there something I am missing??

ALSO … Would [ Expected – Actual ] = Gain (if positive) OR a loss because the actual return was less than the Expected??

AUD- 86 (10/2014)-passed
BEC- 84 (11/2014)-passed
FAR - 72 (04/2014), 71(08/2014), 88 (2/2015) passed
REG- 70 (5/2015) , scheduled 8/24/2015

[mw798]

Well we are going by accrual basis here so you'll HAVE to use the expected return. You won't know the actual return until the next year.

[theeluce]

By that logic, then we wouldn't be able to find the difference between actual and expected.

AUD- 86 (10/2014)-passed
BEC- 84 (11/2014)-passed
FAR - 72 (04/2014), 71(08/2014), 88 (2/2015) passed
REG- 70 (5/2015) , scheduled 8/24/2015

[Author]

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