The following information concerns Saverio Corp.’s defined benefit pension plan. On January 1, 2023, the company amended its pension plan, which resulted in a reduction in prior service benefits for current employees. The present value of the reduced benefits is $34,000.

Instructions

a. Calculate the defined benefit expense that will be reported in net income for 2023 if Saverio applies IFRS.

b. Calculate the defined benefit expense that will be reported in net income for 2023 if Saverio applies ASPE. What are the disclosure requirements in this situation?

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Defined benefit obligation, 1/1/23 (before amendment) Plan assets, 1/1/23 Discount rate Annual pension service cost Actual return on plan assets $239,000 155,000 10% 13,000 7,750