Employee Benefits / Pensions — ASC 715 vs IAS 19

For defined-benefit plans, both frameworks measure the obligation actuarially and recognize remeasurements — but they differ on the return on plan assets in P&L and on where actuarial gains and losses go.

Area	US GAAP (ASC 715)	IFRS (IAS 19)
Return on plan assets in P&L	Expected long-term return assumption	Net interest on the net DB liability/asset at the discount rate
Actuarial gains / losses	May be deferred (corridor) and amortized into P&L	Go to OCI and are not recycled
Past service cost	Amortized over remaining service	Recognized immediately
P&L presentation	Net periodic cost (service cost in operating, other components below)	Service cost + net interest in P&L; remeasurements in OCI

The expected-return vs discount-rate net-interest difference is the one that most visibly moves reported pension cost between the frameworks.

• Actuarial assumptions — discount rate, salary growth, mortality.
• Plan-asset fair value and the return convention.
• Curtailments / settlements.

• SAP implementation: SAP HCM / Payroll provisions; actuarial valuations posted to parallel ledgers — write-up forthcoming under SAP & Enterprise Systems.

An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 715 / IAS 19 directly.