How to Calculate Pension Expense for a Defined-Benefit Plan


This video shows how to calculate pension expense for a defined-benefit plan. A comprehensive example is provided to illustrate how (1) service cost, (2) interest cost, (3) expected return on plan assets, (4) amortization of gains or losses (corridor amortization), and (5) amortization of prior service cost are tallied to generate pension expense.

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  1. 10% ?! Lol. That's a good number

  2. is this calculation according to IAS 19?

  3. Good Afternoon. When calculating Pension Expense do I use Actual return or Expected return? My book says actual yet your video say expected. Did this recently change?

  4. Current Service Cost is just a given? I am here to learn how to calculate current service cost and you just skipped it in a wink.

  5. hey . how to calculate actual return if only settlement rate and expected return rate is given?

  6. Is this for ASPE or IFRS?

  7. becker teaches us to use the mnemonic SIR AGE. Just a small tip for anyone watching this

  8. Thank you for these videos! These are really helping make it through the CPA exam.

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