CA Inter P1 · Chapter 4 · Question 3 of 8
Case: The actuarial valuation of the gratuity plan of Pushpak Engineering Ltd, which follows AS 15, shows an actuarial loss of ₹3,20,000 for the year. How should this loss be recognised?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Immediately in the statement of profit and loss as income or expense
Explanation
AS 15 (Revised) requires actuarial gains and losses on defined benefit plans to be recognised immediately in the statement of profit and loss. The OCI route is a feature of Ind AS 19, and AS 15 does not permit deferral (corridor approach) or direct adjustment to reserves.
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