alleryStart learning →A lower discount rate raises the obligation by 2,000. How is it treated?
AExpense in profit or loss
BReduction of plan assets
CActuarial loss in OCI
DPast service cost
Answer & Solution
Correct answer: C. Actuarial loss in OCI
A change in the discount rate is a change in actuarial assumptions, so the 2,000 increase is a remeasurement loss recognised in OCI.
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