[Kris.tina]

Could someone please help clarify something for me? I’m using Becker to prepare for FAR and in the F6 Pension lecture I’m getting so confused by Tim’s wording of an example for amortization to pension expense.

The journal entries are:

DR Net Periodic Pension Expense

CR OCI

My confusion comes from the credit to OCI. I understand a credit to OCI to be increasing the OCI account. But Tim says “Out of AOCI”. Wouldn’t taking something out of AOCI be a debit? Is there a differences between the account balances for AOCI and OCI?

If anyone else has Becker its pg F6-14.

Thanks!

Thanks!
Kris

AUD - 02/10/2014 PASSED!
REG - 05/14/2014 PASSED!
FAR - 08/25/2014 PASSED!
BEC - 11/10/2014, 02/22/2015 PASSED!

[jstay]

Yes, normally this would be a debit out of oci. however, i believe they are talking about the PSC here. so to be put in it would eb a debit to oci and a credit to pension asset/liability. also dont forget the deferred taxes. that would be a debit to DTA and credit to deferred tax expense- oci.

now, to take it out, we would have to credit oci and debit the net pension cost. also, take the DTA asset out by debiting deferred tax expense-oci and credit deferred tax expense- income statement..

then we have the gains into oci.

Here we have a credit to oci and a debit to pension asset/liability.

also a debit to deferred tax benefit-oci and a credit to DTL

take out: debit OCI and credit net periodic pension cost.

also, debit deferred tax benefit- I/S and credit deferred tax benefit- oci

pretty sure this is correct, trying to do it all from memory at work, hope i helped

[Author]

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