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past service cost
The increase in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits. Past service cost may be either positive (where benefits are introduced or improved) or negative (where existing benefits are reduced).
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Accountancy
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