In accounting for a defined-benefit pension plan __the expense recognized each period is equal to the cash contribution. ___the liability is determined based upon known variables that reflect future salary levels promised to employees. __the employer's responsibility is simply to make a contribution each year based on the
In accounting for a defined-benefit pension plan __the expense recognized each period is equal to the cash contribution. ___the liability is determined based upon known variables that reflect future salary levels promised to employees. __the employer's responsibility is simply to make a contribution each year based on the
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 1E
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In accounting for a defined-benefit pension plan
__the expense recognized each period is equal to the cash contribution.
___the liability is determined based upon known variables that reflect future salary levels promised to employees.
__the employer's responsibility is simply to make a contribution each year based on the formula established in the plan.
__an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised.
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