Refer to the situation described in E 17–8.

Required:
How might your answer differ if we assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS)? The interest rate on high-grade corporate bonds is 6%.

E 17–8

...................................................................($ in thousands)
Service cost, 2021 ......................................................$112
Projected benefit obligation, January 1, 2021 ..........850
Plan assets (fair value), January 1, 2021 ....................900
Prior service cost—AOCI (2021 amortization, $8) ......80
Net loss—AOCI (2021 amortization, $1) ....................101
Interest rate, ..................................................................6%
Expected return on plan assets, .................................10%
Actual return on plan assets, .......................................11%