Define prior service cost. How is it reported in the financial statements? How is it included in pension expense?

Q: How important is the actuaries role is in pension accounting?

A: Pension accounting is a critical area of financial reporting for pension plans. The role of the…

Q: What is the role of an actuary relative to pension plans?What are actuarial assumptions?

A: An actuarial valuation is a kind of evaluation and appraisal of the assets and liabilities of…

Q: How does an “asset gain or loss” develop in pension accounting? How does a “liability gain or loss”…

A: Plan assets: Assets which are created, maintained and planned for a specific purpose or benefit is…

Q: Which are the components that are included in the pension expense?

A: Pension plan: Pension plan is an agreement between the employer and employee. After the retirement…

Q: Describe the Components of Pension Expense.

A: Pension fund: A fixed sum of money is receivable in future or after the age of retirement, which the…

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

A:

Q: Do post-retirement benefits have a comparable accounting process to pension benefits?

A: The answer:…

Q: Complete the spreadsheet below. (Negative or Deductible amounts should be entered with a minus…

A: Introduction: The ending balance of an account is the net residual balance. It is often measured at…

Q: In computing the interest component of pension expense, what interest rates may be used?

A: Pension expense: Pension expense is an expense to the employer paid as compensation after the…

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: Explain how to determine pension expense.

A:

Q: What interest rates may be used to calculate the pension expense's interest component?

A: The Answer for interest rates may be used to calculate the pension expense's interest component:

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

A: Prior Service Cost- When an employee is granted a pension revision, the amount of benefit earned…

Q: What is an actuary? What is the actuary’s role in pension administration

A: Actuaries are highly experienced specialists who handle issues such as determining premium pricing…

Q: How is the pension expense influenced by changes in the pension liability and plan assets?

A: Pension Expense: These are the costs that are associated with the pension plans and these expenses…

Q: what is the difference between Accumulated Benefit Obligation and Projected Benefit Obligation? How…

A: Difference between Accumulated Benefit obligation and projected benefit obligation: Accumulated…

Q: What determines whether a pension plan is underfunded or overfunded?

A: An overfunded pension plan is a plan which possess more assets as compared to the liabilities. An…

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…

Q: What are the changes that affect the pension expense?

A: The net periodic pension costs includes: 1. Current service cost 2. Past service cost 3. Interest…

Q: a "asset gain or loss" in the context of pension accounting? What is the development of a "liability…

A: Plan assets: Assets are created, maintained and planned in a specific purpose. The contribution of…

Q: Describe the obligations of pension.

A: A pension is a plan of retirement that requires contribution from both the employer & the…

Q: What is meant by “prior service cost”? When is prior servicecost recognized as pension expense?

A: Prior service cost: The change in the amount of projected benefit due to changes in the act or rules…

Q: What method should be used to account for profits or losses associated with pension plan assets?…

A: The Answer

Q: What exactly does "previous service cost" mean? When is past service cost recognized as a pension…

A: This question about  describes "Previous service cost" might indicate several different things. When…