Calculate the past service costs

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XYZ Company, a calendar-year entity, amends its defined benefit pension plan on January 1, 2012 and must recognize the increase in past service costs of its vested and non-vested employees as of that date in the calculation of its net 2012 pension expense (or revenue). The pertinent facts as of January 1, 2012 are: Increase in PSC-vested employees: $5,000 Increase in PSC-non-vested employees: $2,000 Remaining vesting period-non-vested employees: 5 years Remaining working life-vested employees: 10 years Remaining working life-non-vested employees: 20years

1. Calculate the past service costs included in 2012 net pension expense (or revenue) under IAS 19.

2. Calculate the past service costs included in 2012 net pension expense (or revenue) under U.S GAAP.

Reference no: EM131562627

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