Introduction to Accounting

Pension Expense (Defined Benefit)

Formula

Service Cost + Interest Cost - Expected Return on Plan Assets ± Amortization of Prior Service Cost ± Amortization of Net G/L

CategoryPension
ComponentsService; Interest; Return; PSC Amort; G/L Amort
Example100 + 50 - 40 + 5 + 3 = $118K

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