Answered: increases the Employee Benefit Expense?

Business

Accounting

increases the Employee Benefit Expense?

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 7MC: Which of the following is not a component of pension expense? a. amount funded b. service cost c....

See similar textbooks

Related questions

Q: Where a post-employment benefit plan contains characteristics of both defined contribution and…

A: The employer needs to pay post employment benefits in addition to salary. The post employee benefits…

Q: Which component of Kensington’s periodic pension cost would be shown in OCI ratherthan P&L?A .…

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: Explain the following terms as used in IAS 19 Employee Benefits: (1) The term 'defined benefit…

A: Defined Benefit Plan Defined benefit plan which is described as the long term employees compensation…

Q: Explain the following terms. Include the definition, how they are calculated, treated in the…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: are the key accounting issues in determining the

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

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: The two main types of pension plans are defined benefit plans and defined contribution plans.…

A: Pension plan: Pension plan is an agreement between the employer and employee. After the retirement…

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: Distinguish among the vested benefit obligation, the accumulated benefit obligation, and the…

A: Vested benefit obligation (VBO) VBO is obtained as the present value of the benefit obligation which…

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

Q: Net interest cost is a component of pension expense under IFRS. How is net interest cost calcul…

A: Net Interest cost is calculated by taking the difference between interest expense on defined benefit…

Q: How should gains or losses related to pension plan assets be recognized? How does this treatment…

Q: (a) Explain the following as used in IAS 19 Employee Benefits: (1) The term 'defined benefit pension…

A: IAS 19 stands for the purpose of providing guidelines for the accounting processes and disclosures…

Q: Define prior service cost. How is it reported in the financial statements? How is it included in…

A: Pension: A pension is a type of retirement plan in which an employer makes a contribution to a pool…

Q: Explain the following terms. Include the definition, how they are calculated, treated in the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: For a defined benefit pension plan, pension expense consists of five components, for which the…

A: Defined Benefit Pension Plan: As opposed to directly relying on individual investment performance, a…

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: Distinguish between defined contribution and defined benefit pension plans. Justify the employer's…

A: The Answer :

Q: S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined…

A: As per IAS 26 Accounting and Reporting by Retirement Benefit Plan the two given statements are of…

Q: Under PAS 19, which of the following statement is true? I. Current service cost is the increase in…

A: The PAS 19 is related to pension defined benefit obligation plan, when an employee provides 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: A defined-contribution plan specifies the benefits the employee will receive at the normal…

A: Defined Contribution Employer Contributes specific periodic amounts of contribution to the plan…

Q: Under PAS 26 (Accounting and Reporting by Retirement Benefit Plans), investments held by retirement…

A: PAS 26 deals with the requirements for the preparation of financial statements of retirement benefit…

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: Classify the following fixed costs as normally being either committed or discretionary:e. Pension…

A: Committed cost: Committed cost is incurred as a result of organizations’ ownership or use of…

Q: How does accounting for postretirement benefits similar in most respects to accounting for pension…

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

Q: a "asset gain or loss" in the context of pension accounting? What is the development of a "liability…

A: Plan assets: Assets are created, maintained and planned in a specific purpose. The contribution of…

Q: QUESTION 1 Explain the following terms. Include the definition, how they are calculated, treated in…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: What is meant by “prior service cost”? When is prior servicecost recognized as pension expense?

A: Prior service cost: The change in the amount of projected benefit due to changes in the act or rules…

Q: describe the components of a company’s defi ned benefi t pension costs;

A: COMPONENTS OF COMPANY 1. Cash : A primary factor in a big series of scenarios comprising of start…

Q: What exactly does "previous service cost" mean? When is past service cost recognized as a pension…

A: This question about describes "Previous service cost" might indicate several different things. When…

Question

Which of the following increases the Employee Benefit Expense?

Actual return on plan assets

Gain on remeasurement of plan assets

Interest income on plan assets

Loss on settlement of benefit obligation

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Meaning of Employee Benefit Expense:

VIEW

Step 2 Meaning of different terms:

VIEW

Step 3 The correct option is (d)

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The actuarial present value of all the benefits attributed by the pension benefit formula to employee service rendered before a specified date based on expected future compensation levels is the: a. projected benefit obligation b. prior service cost c. service cost d. accumulated benefit obligation
An increase in OCI related to plan assets occurs when: Select one: a. The accumulated benefit obligation is more than expected. b. The vested benefit obligation is less than expected. c. Retiree benefits paid out are less than expected. d. The return on plan assets is higher than expected. e. The employer contributes an amount greater than it was liable to do.
look over the three most important components of the pension expense. The treatment of expected and actual return on plan assets, particularly when the actual return is greater than the expected, the amortization of prior service cost and the unexpected gain/ loss. Discuss the accounting treatment of these items with suitable examples.
The interest on the defined benefit obligation component of defined benefit expense reflects the incremental borrowing rate of the employer. is the current market rate. may be stated implicitly or explicitly when reported. is the same as the expected return on plan assets.
what is the difference between Accumulated Benefit Obligation and Projected Benefit Obligation? How do you determine the Plan Asset/Liability? How do you compute the Pension Expense?
Explain the following terms. Include the definition, how they are calculated, treated in the accounting records (general ledger) and shown in the financial statements. Defined Benefit Obligation Plan Assets Pension Asset/Liability Pension Expense Other Comprehensive Income (OCI) gain/loss
What are the four basic components of pension expense? Select one: A. Service cost, benefits paid, expected return on plan assets, and amortization of deferred amounts B. Service cost, benefits paid, actual return on plan assets, and amortization of deferred amounts C. Service cost, interest cost, actual return on plan assets, and amortization of deferred amounts D. Service cost,interest cost, expected return on plan assets, and amortization of deferred amounts E. None of the above
Which of the following items on the statement of net assets available for benefits would indicate a plan failed nondiscrimination testing? Select one: a. Excess contributions refundable/payable b. Employee contributions receivable c. Adjustment from fair value to contract value d. Adjustment from contract value to fair value