CERTYNEX IFRS ACADEMY

On 1 April, Evaris SA amends its defined benefit plan by improving the benefits. At the last reporting date, the obligation was 9,600,000. At 1 April, using current actuarial assumptions, the obligation is 9,910,000 before the amendment and 10,270,000 after the amendment (case facts). How does Evaris determine the past service cost?

As the difference between the obligation after the amendment at 1 April and the obligation at the last reporting date, that is 670,000.

As the obligation after the amendment at 1 April, that is 10,270,000, since the amendment creates a new obligation for Evaris.

As the difference between the obligation after and before the amendment, both measured at 1 April using current assumptions, that is 360,000.

As the difference between the obligation before the amendment at 1 April and that at the last reporting date, that is 310,000, which measures the effect of the improvement.