Answer: Employees' service costs only.

## Explanation Under IFRS and US GAAP accounting standards for defined benefit pension plans: **Service costs** are included in net income (profit or loss). These represent the increase in the pension obligation resulting from employees' service during the current period. **Remeasurements** (which include actuarial gains/losses and the return on plan assets excluding amounts included in net interest) are **not** included in net income. Instead, they are recognized in **other comprehensive income (OCI)**. **Key components of defined benefit pension expense:** 1. **Service cost** - recognized in net income 2. **Net interest cost/income** - recognized in net income 3. **Remeasurements** - recognized in OCI Therefore, only employees' service costs are included in net income, while remeasurements are excluded from net income and reported in OCI.

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