How to account for changes in pension related assets and liabilities?

Question

According to the IAS 19 R, the difference between the fair value of the pension related assets and the Defined benefit obligation should be accounted in OCI. My problem is in the accounting scheme adopted to get the target balance sheet.
Let's assume the following:
- The pension related assets have a historical value of 1000,00
- The fair value of assets is 1200,00 at the end of the year
- the DBO is 1500,00
In this case, my interpretation allows me to draw two target balance sheets. 1st question: Which one is correct?
BS 1
Assets         1000                         Liabilities      300,00

BS 2
Assets            0                           Liabilities         300,00

Which are the accounting schemes to adopt for a better conformity with the norm?

Thank you for your reply.

Comments

can you tell us where does IAS19 say that such difference should be accounted for in OCI? Is it paragraph 94?

Answer 1

If fair value is 20,000 more than the historical value, then take it to other comprehensive income (OCI)
Dr Pension fund assets
Cr Other comprehensive income
And since your defined benefit obligation 1500,000, take 300,000 into income statement
Dr Income statement (expense)
Cr Defined benefit obligations

This is how I see from what you say.

Comments

Thank you a lot for your reply.
Then, my BS will be presented as the following:
Assets 1 200,00                            Liabilities 500,00