For defined-benefit plans, both frameworks measure the obligation actuarially and recognize remeasurements — but they differ on the return on plan assets in P&L and on where actuarial gains and losses go.
| Area | US GAAP (ASC 715) | IFRS (IAS 19) |
|---|---|---|
| Return on plan assets in P&L | Expected long-term return assumption | Net interest on the net DB liability/asset at the discount rate |
| Actuarial gains / losses | May be deferred (corridor) and amortized into P&L | Go to OCI and are not recycled |
| Past service cost | Amortized over remaining service | Recognized immediately |
| P&L presentation | Net periodic cost (service cost in operating, other components below) | Service cost + net interest in P&L; remeasurements in OCI |
The expected-return vs discount-rate net-interest difference is the one that most visibly moves reported pension cost between the frameworks.
An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 715 / IAS 19 directly.