Please help me with the reasoning for this answer, i was expecting that as the company is following USGAAP so the past service cost will be amortized from OCI but i dont get it how Lori’s comment about expensing it is correct.
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According to US GAAP, Past Service costs are taken into OCI and then amortized over the employee’s average service life in the subsequent periods.
For more details, please check the Core Readings, Page 71.