Alternative methods exist for the measurement of the pension obligation (liability). Which measure requires the use of future salaries in its computation?

Q: Which component of Kensington’s periodic pension cost would be shown in OCI ratherthan P&L?A .…

A:

Q: What are two ways to measure the obligation for postretirement benefits other than pensions? Define…

A: Post-retirement benefit obligation refers to the present value of benefits that are expected to be…

Q: lease answer the following questions about defined benefit pension plans: Companies with defined…

A: Introduction: Pension plan: Pension plan can also be defined as retirement plan in which the…

Q: Describe how pension expense is a composite of periodic changes that occur in both the pension…

A: Pension plan: It is the plan devised by corporations to pay the employees an income after their…

Q: Which of the following is not considered by an actuary when determining the annual contribution to a…

A: The correct answer with explanations are as follows.

Q: An increase in OCI related to plan assets occurs when:   Select one: a. The accumulated benefit…

A: The information given is a question related to Plan Assets and Deferred Obligation Accounting.

Q: 1 a. Briefly describe how are pension gains and losses recognized.    b.  Explain what are pension…

A: Pension gain and losses arise due to change in the underlying assumptions which affect the total…

Q: When a defined benefit pension fund has assets whose value is below the present value of its…

A: When a defined benefit pension fund has assets whose value is below the present value of its…

Q: Depending on when an unfunded pension liability is to be paid, it will be classified on the balance…

A: Yes, unfunded pension liability will be classified as a liability on the BS Balance Sheet It is…

Q: look over the three most important components of the pension expense. The treatment of expected and…

A: Introduction  Companies account pension expense on accrual basis, accounting for pension plan…

Q: Under IFRS, any difference between the pension expense and the payments into the pension fund plan…

A: Pension expense and the contribution to pension fund are recorded through pension liability/asset…

Q: Net interest cost is a component of pension expense under IFRS. How is net interest cost calcul…

A: Net Interest cost is calculated by taking the difference between interest expense on defined benefit…

Q: How should gains or losses related to pension plan assets be recognized? How does this treatment…

A:

Q: A pension plan is underfunded when the employer’s obligation (PBO) exceeds the resources available…

A: Projected benefit obligation (PBO): This is the estimated present value of future retirement…

Q: Describe what factors contribute to the pension benefit obligation. Discuss the effect of the…

A: A projected benefit obligation (PBO) is an actuarial calculation of how much money a firm will…

Q: Which type of retirement plans are subject to contribution limits? Select one: a. Only defined…

A: Defined contribution plans refers to the plan under which both the employee and employer contribute…

Q: Discuss the relative objectivity of the measurement process of accrual versus cash (pay-as-you-go)…

A: Pension is the regular payment allowed for an employee after their active working life. It is a…

Q: For a defined benefit pension plan, pension expense consists of five components, for which the…

A: Defined Benefit Pension Plan: As opposed to directly relying on individual investment performance, a…

Q: 1. Which of the following statements typifies defined contribution plans? Investment risk is borne…

A: A defined contribution plan is a type of retirement plan in which the employer, and sometimes the…

Q: What are the four basic components of pension expense? Select one: A. Service cost, benefits paid,…

A: Answer -  To calculate a pension expense of a particular Employee working under him, the employer…

Q: All of the following are events that can change the projected benefit obligation (PBO) during a…

A: The PBO is the present value of future retirement benefit payouts. A higher PBO represents a higher…

Q: The return on plan assets is the increase in plan assets (at fair value), adjusted for contributions…

A: Return on plan assets is calculated as Plan assets * Expected Return

Q: hange in the benefit plan assets?   a.contributions from the employer. b.actual/expected return on…

A: Employees with defined benefit plans receive a fixed, predetermined benefit when they retire. The…

Q: Xerox reports the following pension and retiree health care ("Other") footnote as part of its 10-K…

A: (a) Service cost is the value of additional pension benefits employees earn in a year, paid in the…

Q: (Basic Terminology) In examining the costs of pension plans, Helen Kaufman, CPA, encounters certain…

A: a. 1 The service tenure of the employee is matched with the addition of benefits to the pension…

Q: The net pension liability (PBO minus plan assets) is increased by: A. Service cost. B. Expected…

A: The net pension liability (PBO minus plan assets) is increased by Service cost, because if service…

Q: In determining the present value of the prospective benefits (often referred to as the defined…

A: Defined benefit obligation means a defined plan of contribution from employer to employees'…

Q: The projected benefit obligation (PBO) is best described as the a. Present value of benefits accrued…

A:

Q: What is meant by past service cost? When is past service cost recognized as pension expense?

A: Service cost refers to the cost which is used through actuaries of the firm in order to determine…

Q: Under IFRS, which of the following statements is true regarding accounting for defined benefit…

A: defined benefit pension plan means these are post emplment Benifits other then defined contributions…

Q: How do U.S. GAAP and IFRS differ with regard to reporting gains and losses from changing assumptions…

A: Definition: Pension plan: It refers to a plan that is formulated to provide earnings to the…

Q: In the reconciliation of the beginning and ending fair value of the plan assets, a company should…

A: Fair Value of Plan Asset: It is the fair market value of plan assets that determines how much money…

Q: How does accounting for postretirement benefits similar in most respects to accounting for pension…

A: Pension plan: This is the plan devised by corporations to pay the employees an income after their…