Cadbury Company, which uses iGAAP, has a postretirement benefit plan. During 2010 Cadbury recognized $30,000 unexpected asset

Question:

Cadbury Company, which uses iGAAP, has a postretirement benefit plan. During 2010 Cadbury recognized $30,000 unexpected asset gains in income. Just $10,000 of the gains exceeded the corridor, and the average remaining service lives of Cadbury’s employees is 10 years. Discuss how Cadbury’s accounting for the unexpected losses would affect comparisons to a U.S. GAAP company with a similar unexpected gain.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...