Document ID: chunk:federal_register_of_legislation:F2023C00383:reg:4:p10
Version: federal_register_of_legislation:F2023C00383
Segment Type: reg
Provision Reference: reg 4 (pt 10/25)
Character Range: 90568–93499

benefit deficit or surplus. Paragraph 140(b) requires the entity to disclose a brief description of the link between the reimbursement right and the related obligation.
119 If the right to reimbursement arises under an insurance policy that exactly matches the amount and timing of some or all of the benefits payable under a defined benefit plan, the fair value of the reimbursement right is deemed to be the present value of the related obligation (subject to any reduction required if the reimbursement is not recoverable in full).

Components of defined benefit cost
120 An entity shall recognise the components of defined benefit cost, except to the extent that another Australian Accounting Standard requires or permits their inclusion in the cost of an asset, as follows:
(a) service cost (see paragraphs 66–112 and paragraph 122A) in profit or loss;
(b) net interest on the net defined benefit liability (asset) (see paragraphs 123–126) in profit or loss; and
(c) remeasurements of the net defined benefit liability (asset) (see paragraphs 127–130) in other comprehensive income.
121 Other Australian Accounting Standards require the inclusion of some employee benefit costs within the cost of assets, such as inventories and property, plant and equipment (see AASB 102 and AASB 116). Any post-employment benefit costs included in the cost of such assets include the appropriate proportion of the components listed in paragraph 120.
122 Remeasurements of the net defined benefit liability (asset) recognised in other comprehensive income shall not be reclassified to profit or loss in a subsequent period. However, the entity may transfer those amounts recognised in other comprehensive income within equity.

Current service cost
122A An entity shall determine current service cost using actuarial assumptions determined at the start of the annual reporting period. However, if an entity remeasures the net defined benefit liability (asset) in accordance with paragraph 99, it shall determine current service cost for the remainder of the annual reporting period after the plan amendment, curtailment or settlement using the actuarial assumptions used to remeasure the net defined benefit liability (asset) in accordance with paragraph 99(b).

Net interest on the net defined benefit liability (asset)
123 An entity shall determine net interest on the net defined benefit liability (asset) by multiplying the net defined benefit liability (asset) by the discount rate specified in paragraph 83.
123A To determine net interest in accordance with paragraph 123, an entity shall use the net defined benefit liability (asset) and the discount rate determined at the start of the annual reporting period. However, if an entity remeasures the net defined benefit liability (asset) in accordance with paragraph 99, the entity shall determine net interest for the remainder of the annual reporting period after the plan amendment,