Question: Look at Note 36, part c. What amount of past service cost (called prior service cost under U.S. GAAP) did BA recognize in earnings for

Look at Note 36, part c. What amount of past service cost (called prior service cost under U.S. GAAP) did BA recognize in earnings for the year ended March 31, 2009? The Employee Benefit section within Note 2: “Summary of significant accounting policies” in BA's financial statements states that “Past service costs are recognised when the benefit has been given.” Is this policy consistent with U.S. GAAP? Explain.

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