Accounting for Defined Benefit Pension Plans under IFRS (rev 2020)

[@pineappleognam421]

This was short yet sufficient enough to explain a lot of concepts. Thank you! Pls keep going

[@The_Business_Doctor]

Glad you liked it!

[@vanadjei9698]

Super fantastic Dr. This IFRS has been very challenging for me understanding it but u nailed it...thank u

[@The_Business_Doctor]

Happy to help!

[@tolakimbibi]

Thank you very much for making the DBO so much easier to understand!

[@The_Business_Doctor]

You're very welcome!

[@istiaqahmed9656]

I really appreciate your effort... very ... very well explained.... i just found exactly what i was looking for...

[@The_Business_Doctor]

Excellent! I’m glad.

[@shreyasooden9407]

I can't thank you enough, so well explained.

[@The_Business_Doctor]

Thank you! I'm glad you liked it.

[@aayushlamsal7574]

literally a god level explanation

[@The_Business_Doctor]

Thanks Aayush! I'm glad you found it useful.

[@keithlorino5234]

I will be heading back to take financial reporting 2, and could use all the tutorials to gain better understanding

[@The_Business_Doctor]

I'm glad they can be helpful to you.

[@rehamelmasri4786]

Great video, thank you so much for the very clear explanation.

[@The_Business_Doctor]

Thanks!!

[@italianadventurer1157]

You helped me a lot. Thanks !

[@The_Business_Doctor]

Thanks! I'm glad it was useful for you.

[@anandrocker66]

Thank you!! extremely useful refresher!!

[@The_Business_Doctor]

You're welcome!

[@kelcydemarco8861]

Thanks for this video! If the pension would is in its first year, would there be any actuarial gains or losses please?

[@The_Business_Doctor]

Hi Kelcy. In the first year of a pension, it is possible that, by the end of the year, there could be an actuarial gain or loss. Remember, at each balance sheet date management undertakes a review of the pension fund and actuarial assumptions may change, though it might be unlikely in the first year because the plan is new and the actuarial assumptions should be stable. Hope this helps. Mark

[@shreyasethiya4159]

very nicely explained.

[@The_Business_Doctor]

Glad it was helpful!

[@mostafaafify1666]

How did you get 118,400 to credit the net defined liability in the journal entry slide.. earlier you had mentioned it was 97,600 on the pension worksheet? Other than that, brilliant video!

[@The_Business_Doctor]

Hi Mostafa, Notice that at 10:07 in the video there are actually 2 journal entries. The first credits the net defined benefit liability (NDBL) for $118,400 for the pension expense less the remeasurement gain, THEN the second entry debits the NDBL for the contributions to the plan. The net between the two is $97,600. Hope that helps and I'm glad you found the video helpful. Mark

[@CPACCPROF]

Have to say your videos are outstanding, so THANK YOU! I do have a quick question about the problem which is: The O.C.I. Remeasurement Loss of $99,600 given in the problem does not appear to be on your worksheet. Am I missing something or was this perhaps an oversight? Again, thank you for all your videos. I refer to them all the time. Cheers!

[@The_Business_Doctor]

Thanks. Glad you like the videos. That $99,600 is the beginning balance of the accumulated OCI account relating to remeasurement losses. It’s NOT the current year remeasurement loss. This question doesn’t calculate the ending balance of the OCI account. You could add it to tue worksheet and then calculate the ending balance to roll forward to the next year. Hope this helps.

[@CPACCPROF]

Thank you. Upon re-reviewing the problem I realized what you state above. Unfortunately I didn't know how to remove my comment so.....Have a great day! You are an amazing professor. Cheers!@@The_Business_Doctor

[@nightthemare4742]

Perfect!

[@The_Business_Doctor]

Thank you!

[@antoinettemercado2606]

Do you have any videos for defined contribution plans?

[@The_Business_Doctor]

Hi Antoinette. I don’t have plans for defined contribution videos right now but they are super easy since there is no pension liability or asset for the company to track. The company simply matches the employee contribution (up to a maximum amount) to a plan like a Canadian RRSP, and records it as an employee RRSP (or pension plan) expense. DR employee RRSP expense xxx CR cash xxx That’s pretty much it! Hope this helps. Mark

[@janemandel2691]

Would you like to share the worksheet ? Headache chapter

[@The_Business_Doctor]

Sure, here's the link to the worksheet for it: docs.google.com/spreadsheets/d/1VwGegpBoJvtfQF6othzAMPewybkPDDDRaHJkElIG17U/edit?usp=sharing

[@keithlorino5234]

1025000,was thatbaq beginning balance

[@The_Business_Doctor]

Sorry for the delay in responding. No, the $1,025,000 is the ENDING balance and the calculation in note 4 is working backwards to the beginning balance to prove the remeasurement gain/loss

[@rmusic8969]

My brain is hurting lol

[@The_Business_Doctor]

Mine too!