On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of past service costs. The plan has 100 active employees with an average expected remaining working life of 10 years. There currently are no retirees under the plan.
Required:
Determine the amount of past service costs to be amortized in Year 1 and subsequent years under
(a) IFRS
(b) U.S. GAAP.