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Can anyone explain why for prior service costs , Current prior service cost is entered as :

OCI XXX
Pension Benefit Asset XXX

While amortization of prior service cost is entered as:

Net Periodic Pension Cost XXX
OCI XXX

[Anonymous]

Total cost is booked to OCI against and asset or liability, and a portion of it is amortized on the income statement as part of net periodic pension cost. So the full amount of the cost is booked to OCI and liablity/asset, and then amortized portion is booked to expense/OCI.

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That makes sense to me , but the two in the Becker Sim apparently aren't related which confuses me.

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Is the current prior service cost a separate prior service cost than the one being amortized?

[Anonymous]

Is the current prior service cost a separate prior service cost than the one being amortized?

Yes, current PSC is separate from the cost being amortized. Such current PSC will become part of unrecognized PSC (it accumulates, that’s why it’s parked in AOCI) on the following period.
Current PSC is the result of the subsequent plan amendment, reflecting new or increased benefits, to be applied to service already provided. (Becker FAR 7 Page 5)

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Thank you Amor that makes sense to me now

[Author]

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