Researching GAAP Situation Panther Company currently sponsors a defined benefit pension plan for its employees. At the end of 2019, the plan had a projected benefit obligation of $1,456,000 and fair value of plan assets of $1,629,000. Panther recognized a net pension asset in its balance sheet of $173,000 at the end of 2019. Due to the plans overfunded position, Allision Costello, Panther's CFO, is interested in finding out if it is possible to settle or curtail the plan. Specifically, she is interested in purchasing a portfolio of high-quality bonds that have principal and interest payment dates very similiar to the estimated dates pension benefits would be paid. Reference GAAP-(include the codification) 1. Would Allison Costello's plan of purchasing high-quality bonds qualify as a settlement of a pension plan? Why or why not?
Researching GAAP
Situation
Panther Company currently sponsors a defined benefit pension plan for its employees. At the end of 2019, the plan had a projected benefit obligation of $1,456,000 and fair value of plan assets of $1,629,000. Panther recognized a net pension asset in its
Reference GAAP-(include the codification)
1. Would Allison Costello's plan of purchasing high-quality bonds qualify as a settlement of a pension plan? Why or why not?
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