Components of defined benefit costComponents of defined benefit cost

Components of defined benefit cost

120 An entity shall recognise the components of defined benefit cost, except to the extent that another Australian Accounting Standard requires or permits their inclusion in the cost of an asset, as follows:

(a) service cost (see paragraphs 66–112) in profit or loss;

(b) net interest on the net defined benefit liability (asset) (see paragraphs 123–126) in profit or loss; and

(c) remeasurements of the net defined benefit liability (asset) (see paragraphs 127–130) in other comprehensive income.

121 Other Australian Accounting Standards require the inclusion of some employee benefit costs within the cost of assets, such as inventories and property, plant and equipment (see AASB 102 and AASB 116). Any post-employment benefit costs included in the cost of such assets include the appropriate proportion of the components listed in paragraph 120.

122 Remeasurements of the net defined benefit liability (asset) recognised in other comprehensive income shall not be reclassified to profit or loss in a subsequent period. However, the entity may transfer those amounts recognised in other comprehensive income within equity.