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Ca final -ind as 19
Accountancy
What is unamortized past service cost?
Answers (7)
ruchi lahoti
Can you please elaborate your query
In question 4(b) , how to treat unamortized past service cost ? And what's it's meaning
Thread Starter
Teena GoyalIn question 4(b) , how to treat unamortized past service cost ? And what's it's meaning
Past service cost is the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment. For example - If a plan is changed to give benefits to employees for earlier periods as well, The additional cost becomes past service cost.
CA Suraj Lakhotia Admin
Past service cost is the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment. For example - If a plan is changed to give benefits to employees for earlier periods as well, The additional cost becomes past service cost.
Thank you sir for replying, but whether we have to add or deduct the unamortized past service cost in Present Value of Defined Benefit Obligation?
CA Suraj Lakhotia Admin
You will add
Sir, but in answer they deduct it from Present Value of Defined Benefit Obligation
Thread Starter
Teena GoyalSir, but in answer they deduct it from Present Value of Defined Benefit Obligation
Here it is a gain from curtailment and not a cost