Module I· Interview Essentials AccountingAdvanced

Question

Pension expense of 50 is booked: service cost 30, interest cost 20. Remeasurement loss of 100 from lower discount rate. Three-statement impact?

Answer

Service cost hits EBITDA; interest cost hits finance result; remeasurement loss goes to OCI and equity, not P&L.

Deep diveShow more details

For valuation, separate operating pension cost from financing and OCI volatility.

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