Differences between IFRS and U.S. GAAP in accounting for pensions include all of the following except: 

A. Under U. S. GAAP the asset (liability) on the balance sheet differs from the plan's actual funded status, while under IFRS the asset (liability) on the balance sheet equals the plan's actual funded status.
B. Under IFRS past service costs are recognized immediately as part of pension expense.
C. Pension expense computed using U.S. GAAP is likely to be higher because it allows firms to use an expected rate of return that exceeds the discount rate.
D. Under IFRS actuarial gains and losses are recognized in OCI without subsequent amortization to pension expense.


Answer: A

Business

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