[Anonymous]

Could someone give me a brief overview of the financial statement presentation for pensions? I know if you have an underfunded plan that’s a liability and an overfunded plan is an asset. But what does Other Comprehensive Income have to do with it? I don’t really understand when and why you would debit/credit OCI.

[KERI0323]

Other Comprehensive Income comes into play if you have a gain/loss because of actual versus expected returns; you can choose to recognize all in the current period on the IS or record in OCI and amortize over future periods to smooth earnings using the corridor approach. Prior service cost is also recorded in OCI and amortized but you do not have the option to recognize all in a current period; a deferred tax asset also needs to be recorded.

BEC 10/11/2010 77
AUD 11/30/2010 81
REG 02/25/2011 78
FAR 11/28/2011 74,68, 83 and DONE!!! NTS LA #460

[Anonymous]

Thanks for your reply, keri0323! That definitely helps 🙂

[Author]

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