Question: White River Company has a defined benefit pension plan in which the fair value (FV) of plan assets exceeds the present value of defined benefit obligations (PVDBO). The following information is available at December 31, Year 1 (amounts in millions):
PVDBO $3,200
FV of plan assets 3,700
Unrecognized actuarial gains 90
Unrecognized past service cost 50
Because the FV of plan assets exceeds the PVDBO, White River will be able to reduce future contributions to the plan for several years. The present value of reductions in future contributions is $100 million.
Required: Determine the amount at which White River Company will report a defined pension benefit asset on its December 31, Year 1 balance sheet under
(a) IFRS and
(b) U.S. GAAP.