Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2019, are available in Connect. This material also is available under the Finance link at the company’s website (www.airfranceklm.com/en/finance/).

Required:
1. AF reported past service cost (called prior service cost under U.S. GAAP) in its income statement as part of net periodic pension cost. How does that reporting method compare with the way we report prior service cost under U.S. GAAP?
2. Look at AF’s balance sheet. How does the way that AF reports Pension assets and Pension liabilities (provisions) compare with the way we report those amounts under U.S. GAAP?
3. See Note 29.3: “Evolution of commitments.” For its Netherlands operations, did AF report (a) net interest cost or (b) net interest income in 2019?