Refer to the situation described in E 17-8.
($ in thousands)
Service cost, 2018................................................................$112
Projected benefit obligation, January 1, 2018.................................850
Plan assets (fair value), January 1, 2018.......................................900
Prior service cost-AOCI (2018 amortization, $8) ...........................80
Net loss-AOCI (2018 amortization, $1) ....................................101
Interest rate, 6%
Expected return on plan assets, 10%
Actual return on plan assets, 11%
Required:
How might your answer differ if we assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards? 6% is the interest rate on high grade corporate bonds.