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

Q: What factors decide whether a pension plan is adequately financed or not?

A: What criteria determine whether or not a pension plan is appropriately funded:

Q: All of the following are examples of assurance services except: a. Financial engagement.   b.…

A: Assurance services are a type of independent professional service usually provided by certified or…

Q: Why did the FASB's prior pension accounting guidelines not encompass both pensions and healthcare as…

A: This question tells about  the FASB's prior pension accounting guidelines not encompass both…

Q: Justin acquires 90% of the voting common shares of Stevens on January 1, 2019. In 2010, Justin pays…

A: % acquired by Justin = 90%

Q: Understand the interrelationships among the elements that constitute a definedbenefit pension plan

A: Defined benefit pension plans are the retirement designs that include providing a fixed and…

Q: The components of postretirement benefit expense are similar to the components of pension expense.…

A: Other postretirement benefits: The postretirement benefits which are provided by employers, other…

Q: are the key accounting issues in determining the

A: Pension Accounting Many organisations provide additional benefits to their employees in addition to…

Q: What benefits accrue to companies who elect to use pension funds? How does the use of a pension fund…

A: A Pension plan is a type of retirement plan that requires an employer to contribute to a pool of…

Q: Distinguish fundamentally between a defined contribution and a defined benefit pension plan.

A: Given : This question tells about Distinguish between a defined contribution pension plan and a…

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: Were you correct that the pension liability is not reported in the balance sheet? What is the…

A: Pension refers to the accumulated amount of money that is added during the employment period of an…

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: Describe the funded status of pension plans and how that amount is reported.

A: Pension:   It refers to the fund into which a sum is added during the course of employment years.…

Q: Which type of pension plan would you prefer to be covered under (i.e., defined benefit, defined…

A: In this there are many types of pension plans available and each have own characteristics.

Q: Describe how a company's pension plans are reported when there are many plans, some of which are…

A: Organizations establish a single pension plan for its employees. However, some organizations have…

Q: Explain how cash-basis accounting for pension plans differsfrom accrual-basis accounting for pension…

A: Under cash basis of accounting pension cost are recognised on the basis of cash paid by the employer…

Q: Discuss the fundamentals of pension plan accounting.

A: Pension is a retirement plan available with employees. An employer makes contributions for…

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: What two components of pension expense may be negative (i.e., reduce pension expense)?

A:

Q: Should options given as part of compensationpackages be reported on the income statement asan…

A: Stock options are recognized as a compensation expense in the financial statements of a company.…

Q: In general, how can an employer choose an appropriate discount rate for its pension plan? What…

A: Step 1: The Discount rate to be selected must be in consideration with the ability of the company to…

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

A: The answer:…

Q: Define Employee Retirement Income Security Act (ERISA)

A: The 1974 Employee Retirement Income Security Act secures American pension resources by enforcing…

Q: Which are the components of pension expense that involve delayed recognition?

A: