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Problem
On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension, resulting in $150,000 of past service costs.The plan has 100 active employees with and average expected remaining working life of 10 years. There currently are no retirees under the plan.
Determine the amount of past service costs to be amortized in Year 1 and subsequent years under (a) IFRS and (b) U.S. GAAP.
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