A pension plan is underfunded when the employer’s obligation (PBO) exceeds the resources available to satisfy that obligation (plan assets) and overfunded when the opposite is the case. How is this funded status reported on the balance sheet if plan assets exceed the PBO? If the PBO exceeds plan assets?

Q: The employer has an obligation to provide future benefits for:     A. Defined benefit pension…

A: Defined benefit and defined contribution are the  retirement pension plan

Q: Detail the possible causes of a deficit in a Defined Benefit (DB) pension plan and explain why a…

A: Underfunding occurs when a firm's pension payout obligations outweigh its reserves, requiring the…

Q: When accounting for pension costs, how should the payment into the pension fund be recorded? How…

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

Q: Evaluate this statement: The excess of the actual return on plan assets over the expected return…

A: Plan assets: The assets which are used to satisfy the postretirement obligation, are held as a…

Q: If a company takes funds from it's pension fund for operating purposes it is in violation of what…

A: The regulation mentioned in Employee Retirement Income Security Act , 1974 as amended "ERISA" titles…

Q: are the key accounting issues in determining the

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

Q: A pension asset is reported when

A: Answer: Pension asset is defined as the asset that is created due to pension plan for purpose of…

Q: Differentiate between a defined contribution pensionplan and a defined benefit pension plan. Explain…

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

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: 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: ification fo

A: Employees working with an entity for a specific number of years are eligible for retirement…

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 the fundamental differences between a defined contribution pension plan and a defined…

A: Defined contribution plan and defined benefit plan are the two types of pension plans.In a defined…

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: The projected benefit obligation is the measure of pension obligation that __is not sanctioned…

A: The three components of pension expense 1. Service cost, 2. the interest cost,  3. expected return…

Q: If a pension plan is both contributory and qualified, it is

A: First let us understand the key terms in the question. Pension plan- A Pension plan is an…

Q: _1. If a company has an underfunded defined-benefit pension plan: A. no payment may be made to…

A: Underfunded Defined Pension Plan:-It is a company's pension plan where it has more liabilities than…

Q: Pension benefits contributed by the employer affects both the projected benefit obligation and…

A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at…

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

A:

Q: b. How does each component of pension expense affect pension expense during the period (increase,…

A: b) The components of pension expense are:- i. Service Cost - The increase in the projected pension…

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: 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: 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: The amortization of prior service costs will affect the pension expense for the period along with…

A: solution for above requirement are as follows

Q: panies fund defined-benefit plans, but no such requirement exists for other pos

A: The Employee Retirement Income Security Act of 1974 (ERISA) may be a federal law that sets minimum…

Q: What is a private pension plan? How does a contributorypension plan differ from a noncontributory…

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

Q: explain why a Defined Contribution (DC) pension plan cannot have a

A: Pension plan is the retirement plan that involves accumulation of funds by the contribution of the…

Q: What factors go into determining if a pension plan is adequately funded or not?

A: This question is about what factors go into determining if a pension plan is adequately funded or…

Q: What factors must be considered by the actuary in measuringthe amount of pension benefits under a…

A: Actuarial valuation is the assessment of the pension plan as required stutorily wherein the…

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: It refers to a plan where only the employer contributes to a retirement fund.  a. Contributory plan…

A: RETIREMENT FUNDS:                                       These are the investment options that allow…

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: 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: Which of the following types of pension plan will provide benefits that are dependent on the return…

A: Defined Contribution Plan Defined contribution plan which allows the employees and the employer to…

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: 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: What are the components that might be included in the calculation of net pension cost recognized for…

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

Q: /hich is correct concerning the effect of asset ceiling in a defined enefit plan? O It is the excess…

A: Benifit asset : it recognises an asset measured as the amount of the surplus at the balance sheet…

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

A: The Answer