Question textUnder IFRS, which of the following statements is trueregarding accounting for defined benefit pension plansettlements?Select one:а.Settlements increase the plan assetsb.The difference between the change in the DBO and thechange in the plan assets as a result of the plansettlement is recognized as a gain or loss.c.Settlements increase the defined benefit obligation(DBO).d.Any gain or loss on a plan settlement is presented aspart of other comprehensive income Question textAccording to the IASB, recognition of a liability isrequired when the defined benefit obligation exceedsthe fair value of plan assets. Conversely, when the fairvalue of plan assets exceeds the defined benefitobligation, the Board4Select one:а.does not permit recognition of an asset.b.requires recognition of an asset if the excess fair valueof plan assets exceeds the corridor amount.C.requires recognition of an asset.d.recommends recognition of an asset but does notrequire such recognition.

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Question text Under IFRS, which of the following statements is true regarding accounting for defined benefit pension plan settlements? Select one: a. Settlements increase the plan assets b. The difference between the change in the DBO and the change in the plan assets as a result of the plan settlement is recognized as a gain or loss. с. Settlements increase the defined benefit obligation (DBO). d. Any gain or loss on a plan settlement is presented as part of other comprehensive income

Question text Under IFRS, which of the following statements is true regarding accounting for defined benefit pension plan settlements? Select one: a. Settlements increase the plan assets b. The difference between the change in the DBO and the change in the plan assets as a result of the plan settlement is recognized as a gain or loss. с. Settlements increase the defined benefit obligation (DBO). d. Any gain or loss on a plan settlement is presented as part of other comprehensive income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined by the contributions paid by the employer, the participant, or both, and the operating efficiency and investment earnings of the fund. S2: Under a defined benefit plan, the payment of promised retirement benefits depends on the financial position of the plan and the ability of contributors to make future contributions to the plan as well as the investment performance and operating efficiency of the plan. Only S1 is true None is true Only S2 is true Both are true
The two main types of pension plans are defined benefit plans and defined contribution plans. Explain the difference between the two. How does the accounting for each differ?
Annual additions to qualified retirement plans include interest and dividend income. forfeitures reallocated to plan participants. employee contributions. employer contributions. A) I, II, and III B) II, III, and IV C) I, II, III, and IV D) II and IV
How is the pension expense influenced by changes in the pension liability and plan assets?
Any past service costs should be included in the a) pension expense of past periods. b) pension expense of the current period. c) pension expense of current and future periods. d) plan assets.
33. In a defined-benefit plan, the process of funding refers to determining the projected benefit obligation. determining the amount that might be reported for pension expense. determining the accumulated benefit obligation. making the periodic contributions to a funding agency to ensure that funds are available to meet retirees' claims.
A company that sponsors a defined benefit plan records an entry to debit OCI-Pension Gain/Loss for $5,000 and credit Plan Assets. The company uses the corridor approach to amortize Accumulated OCI-Pension Gain/Loss. This entry indicates that Select one: O a. The expected return on plan assets exceeded actual return on plan assets. O b. The actual return on plan assets exceeded the expected return on plan assets. O c. The beginning balance in Accumulated OCI-Pension Gain/Loss exceeded the corridor. O d. The beginning balance in Accumulated OCI-Pension Gain/Loss did not exceed the corridor. e. a and c f. b and d OO
Question text In determining the present value of the prospective benefits (often referred to as the defined benefit obligation), the following are considered by the actuary: Select one: а. retirement and mortality rate. b. benefit provisions of the plan. c. all of these factors d. interest rates.
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