Asked by Julia Kochman on Jun 16, 2024

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IFRS requires that the discount rate be used to compute the expected return on plan assets.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB).

Discount Rate

The rate of interest applied in discounted cash flow analysis to calculate the present value of forthcoming cash flows.

  • Distinguish the disparities in pension accounting under International Financial Reporting Standards and U.S. Generally Accepted Accounting Principles.
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Brittany PritchettJun 20, 2024
Final Answer :
True
Explanation :
IFRS (International Financial Reporting Standards) requires that the discount rate be used to compute the expected return on plan assets. This is part of the process of calculating the present value of the defined benefit obligation. The expected return on plan assets is an important factor that affects the net periodic pension cost reported by a company.