Assignment: IFRS and U.S. GAAP Reporting
On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of past service costs. The plan has 100 active employees with an average expected remaining working life of 10 years. There currently are no retirees under the plan.
1. Determine the amount of past service costs to be amortized in Year 1 and subsequent years under (a) IFRS and (b) U.S. GAAP.
2. Write a 2-page evaluation, which compares and contrasts the two balance sheets and how these differences impact reporting. Support your statements with references from the text and a minimum of two additional sources formatted according to C5U-Global Guide to Writing and APA Requirements. The CSU-Global Library is a good place to locate these sources.
Submit your responses in MS Word as one document. Label each section clearly. If you choose to use an Excel spreadsheet for your calculations for question 1, please copy and paste your spreadsheet into your Word document.