Employee Benefits- current service costs

[Asnake E]

Hi,

Is there any possibility that the current service cost can be zero when the actuarial assumptions change (decrease in the estimated salary growth rate, increase in the staff turnover rate) and the change in the benefit obligation is the result of discounting cost (interest on the benefit obligation at the beginning of the year) and actuarial gains resulting from the remeasurement of the benefit obligation?
Note: there are no plan assets

[Marek Muc]

No, changes in actuarial assumptions are reflected as one-time adjustments to the liability, whereas current service cost reflects benefits earned in current period.
https://ifrscommunity.com/knowledge-bas ... and-losses
https://ifrscommunity.com/knowledge-bas ... of-service

[Asnake E]

Thank you. But I came across cases where the defined benefit obligation at the year end is lower than the defined benefit obligation at the beginning of the year plus the interest on the benefit obligation at the beginning of the year for some employees in my workings. How can I explain this?
Note: I understand that the benefit obligation at the year end= obligation at the beginning of the year + interest +/- actuarial adjustments - benefits paid

[Marek Muc]

You can also add curtailments and settlements to this equation, and current service cost of course