Amortized prior service cost : This is the reduction on the change in pension plan earned in prior years is recognized over the future service of employee. To indicate : Whether MS Logistics prepares financial statements according to GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), based on the information that the company reports $12,000,000 of amortized prior service cost on its income statement

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Chapter 17, Problem 17.25Q

To determine

Amortized prior service cost: This is the reduction on the change in pension plan earned in prior years is recognized over the future service of employee.

To indicate: Whether MS Logistics prepares financial statements according to GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), based on the information that the company reports $12,000,000 of amortized prior service cost on its income statement

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