Question

At the end of the current year, Pociek Co. has prior service cost of $9,150,000. Where should the prior service cost be reported on the balance sheet?

Short answer

The duration of the service length is used to ascertain the defined benefit amount, known as credited service. This service varies for each employee.

Step-by-step solution

Given the information as

The prior service cost of Pociek Co. is $9,150,000.

The reporting of the amount:

The prior service cost will be reported under the head of other comprehensive income (PSC) with the amount of $9,150,000 in the balance sheet of Pociek Co.