BC275 The amendments made in 2011 result in the measurement of an entity's surplus or deficit in a defined benefit plan in the statement of financial position, consistently with the requirements in US GAAP. Although both US GAAP and IAS 19 require the immediate recognition of changes in the net defined benefit liability (asset), there are differences in where those changes are recognised.

BC276 US GAAP defines net periodic pension cost [FASB ASC Section 715‑30‑20 Defined Benefit Plans - Pension Glossary] as comprising current service cost, interest cost on the defined benefit obligation, expected return on plan assets, amortisation of unrecognised prior service cost (if any), gains or losses recognised and amortised after exceeding a specified corridor (if any), amortisation of unrecognised initial net obligation and/or initial net asset. The IAS 19 requirements for the disaggregation of defined benefit cost and recognition of the components of defined benefit cost differ from the requirements in US GAAP as follows:

(a) Disaggregation of the return on plan assets - US GAAP distinguishes the expected return on plan assets and the difference between the expected and actual returns. The net interest approach in IAS 19 distinguishes an implied interest income on plan assets and the difference between the implied interest income and actual returns.

(b) Past service cost - US GAAP recognises past service cost in other comprehensive income initially, and then reclassifies past service cost from other comprehensive income to profit or loss in subsequent periods. IAS 19 requires past service cost to be included together with current service cost in profit or loss.