IAS12/ IAS 19
IAS12/ IAS 19
The net present value of defined benefit obligation comprises of opening liability, expenses charged to profit or loss and actuarial gain/ loss recognised in OCI. How do I separate the deferred tax expense/ income to be charged in p/l and OCI?
Re: IAS12/ IAS 19
the same way as you separate expenses between P/L and OCI 
deferred tax relating to items charged to P/L goes to P/L and so on
deferred tax relating to items charged to P/L goes to P/L and so onRe: IAS12/ IAS 19
Hypothetical situation:
Opening liability: 100
Current Service Cost: 20
Interest Cost: 30
Actuarial loss: 25
Contribution made: (100)
Closing Liability: 75
Say the applicable interest rate is 30%
DTA would be 22.5 (75*30%)
Opening DTA would be 30 (100*30%)
The deferred tax expense is 7.5 (30-22.5)
How do I split into p/l and OCI?
Am I supposed to charge 7.5 (25*30%) on OCI as deferred tax income, and charge balance as expense in income?
Opening liability: 100
Current Service Cost: 20
Interest Cost: 30
Actuarial loss: 25
Contribution made: (100)
Closing Liability: 75
Say the applicable interest rate is 30%
DTA would be 22.5 (75*30%)
Opening DTA would be 30 (100*30%)
The deferred tax expense is 7.5 (30-22.5)
How do I split into p/l and OCI?
Am I supposed to charge 7.5 (25*30%) on OCI as deferred tax income, and charge balance as expense in income?
Re: IAS12/ IAS 19
Yes, 7.5 goes to OCI. But the remaining balance of -15 is not a balancing figure, it can be broken down as well. The contributions made of 100 are a current income tax expense, right? So a corresponding change in def tax of 30 goes to P/L so that the net impact of contributions on income tax expense is nil. The rest is recognised on current service cost and interest cost in P/L as well