Asked by Yvette Casarrubias on Jun 18, 2024
Verified
Both IFRS and U.S.GAAP require companies to report valuation changes to the company's expected liability to its retired employees due to changes in actuarial estimates in other comprehensive income each period.
Actuarial Estimates
Actuarial estimates are calculations done by actuaries to predict future liabilities, expenses, and life expectancies, often for use in insurance and pension plans.
Other Comprehensive Income
Components of comprehensive income that are excluded from net income, including items such as unrealized gains or losses on foreign investments, pension plan adjustments.
IFRS
A collection of global accounting standards, International Financial Reporting Standards dictate the reporting methods for specific transactions and events in financial statements.
- Understand the requirements for reporting valuation changes in various liabilities and assets under both U.S. GAAP and IFRS.
Verified Answer
AY
Amudha YazhiniJun 21, 2024
Final Answer :
True
Explanation :
Both IFRS and U.S.GAAP require companies to report changes in the valuation of the company's expected liability to its retired employees due to changes in actuarial estimates in other comprehensive income each period.
Learning Objectives
- Understand the requirements for reporting valuation changes in various liabilities and assets under both U.S. GAAP and IFRS.