| Remeasurement gains and losses on the DBO and the plan assets are reported as part of other comprehensive income. |
Remeasurement gains and losses are reported as part of current pension expense. |
| The projected unit credit method is used to determine the amount of the DBO. |
A company can choose to use the actuarial valuation used for funding purposes, or an actuarial valuation prepared specifically for accounting purposes. If the second option is chosen, then either the accumulated benefit method or projected benefit method can be used. (NOTE: a detailed discussion of different actuarial techniques is beyond the scope of this text. All of these techniques represent variations of a present value calculation.) |
| Net defined benefit asset positions should be reported at the lesser of the actual surplus or the asset ceiling amount. |
Net defined benefit asset positions should be reported using a valuation allowance |
| The interest rate used for discounting should be the rate on high-quality debt investments with similar maturity patterns. |
The interest rate used for discounting should be the rate on high-quality debt investments with similar maturity patterns or the rate imputed by the determination of immediate settlement amount, if available. |
| Provides limited guidance on defined contribution plans. |
Provides more detailed guidance, including how to determine the discounted amount of future payments for current services and how to treat interest on unallocated surpluses on converted plans. |
| Actuarial valuations required with sufficient frequency. |
Actuarial valuations required every three years, or sooner, if circumstances change. |
| Requires detailed disclosures. |
Requires simpler disclosures. |
