Refer to the situation described in E 17–21.

Required:
How might your solution differ if Lacy Construction prepares its financial statements according to International Financial Reporting Standards (IFRS)? Assume the actuary’s discount rate is the rate on high-quality corporate bonds. Include any appropriate journal entries in your response.

E 17–21

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($ in millions) Projected Benefit Obligation Balance, January 1 $360 Service cost 60 Prior service cost 12 Interest cost (7.5%) 27 Benefits paid (37) Balance, December 31 $422 Plan Assets Balance, January 1 Actual return on plan assets $240 27 Contributions, 2021 60 Benefits paid (37) Balance, December 31 $290