alleryStart learning →When must past service cost be recognised as an expense?
AOnly when benefits are paid out
BAt the later of amendment or year end
CEvenly over remaining working lives
DAt the earlier of amendment or restructuring
Answer & Solution
Correct answer: D. At the earlier of amendment or restructuring
Past service cost is expensed immediately at the earlier of the amendment or curtailment date and the date related restructuring costs are recognised, with no deferral.
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