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5.6 Income statement classification
Publication date: 30 Nov 2022
us IFRS & US GAAP guide
Under IFRS, companies have the option to present different components of net benefit cost within different line items on the income statement.
US GAAP | IFRS |
Service cost is presented in the same line item or items as other current employee compensation costs (and included within income from operations, if that subtotal is presented). The remaining components of net benefit cost must be presented separately in one or more line items and outside of income from operations (if that subtotal is presented).
| Employers have flexibility to either (1) present all components recognized in determining net income (i.e., service and net interest cost but not gains and losses) as a single net amount (similar to US GAAP) or (2) present those components separately within the income statement.
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