The following is partial information related to Siri Ltd.'s non-pension, post-retirement health care benefit plan at December 31, 2017:
Defined post-retirement benefit obligation, accounting basis ............. $185,000
Plan assets (at fair value) ........................................................ 130,000
Past service cost arising on August 31, 2017 .................................. 17,000
Instructions
(a) Prepare a schedule reconciling, to the extent possible, the plan surplus or deficit with the asset/liability reported on the statement of financial position at December 31, 2017, assuming that Siri Ltd. applies IFRS.
(b) Justify your treatment of the past service costs in part (a).