Question text 16 A pension liability is reported when Select one: а. the accumulated benefit obligation is less than the fair value of pension plan assets. b. accumulated other comprehensive income exceeds the fair value of pension plan assets. с. the pension expense reported for the period is greater than the funding amount for the same period. d. the defined benefit obligation exceeds the fair value of

Question text 16 A pension liability is reported when Select one: а. the accumulated benefit obligation is less than the fair value of pension plan assets. b. accumulated other comprehensive income exceeds the fair value of pension plan assets. с. the pension expense reported for the period is greater than the funding amount for the same period. d. the defined benefit obligation exceeds the fair value of

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 4C

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38. In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as as other comprehensive income (G/L). as accumulated other comprehensive income (PSC). pension asset/liability. an offset to the liability for prior service cost.
The following is a correct entry: Pension Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXX Net Pension Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXX The entry would be found in the a. capital projects fund. b. enterprise fund. c. general fund. d. debt service fund.
Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. The disclosure required in the notes to the financial statements for pension plan assets. 2. Recognition of the net pension asset or net pension liability. 3. Disclosures required in the notes to the financial statements for pension cost for a defined contribution plan.
Under IFRS, any difference between the pension expense and the payments into the pension fund plan assets should be reflected in Select one: a. a contra account to the net defined benefit liability/asset. b. an accrued actuarial liability. c. the net pension liability/asset. d. a note to the financial statements only. e. None of the above.
Th e relationship between the periodic pension cost and the plan’s funded status is bestexpressed in which of the following?A . Periodic pension cost of –£483 = Ending funded status of –£4,774 – Employer contributions of £693 – Beginning funded status of –£4,984.B . Periodic pension cost of £1,322 = Benefi ts paid of £1,322.C . Periodic pension cost of £210 = Ending funded status of –£4,774 – Beginning fundedstatus of –£4,984
What was the dollar amount of loss (gain) on plan assets that was recognized in OCI during 20X1? Prepare the journal entries to record pension expense, the contribution, and the OCI effects.
(Basic Terminology) In examining the costs of pension plans, Helen Kaufman, CPA, encounters certain terms. The components of pension costs that the terms represent must be dealt with appropriately if generally accepted accounting principles are to be reflected in the financial statements of entities with pension plans.Instructions(a) (1) Discuss the theoretical justification for accrual recognition of pension costs.(2) Discuss the relative objectivity of the measurement process of accrual versus cash (pay-as-you-go) accounting for annual pension costs.(b) Explain the following terms as they apply to accounting for pension plans.(1) Market-related asset value.(2) Projected benefit obligation.(3) Corridor approach.(c) What information should be disclosed about a company’s pension plans in its financial statements and its notes?
Question Content Area ERISA (Pension Reform Act of 1974) provides guidance for actual return on plan assets minimum funding during the year accumulated benefit obligation projected benefit obligations
Under IFRS, which of the following statements is true regarding accounting for defined benefit pension plan settlements? Select one: a. Settlements increase the defined benefit obligation (DBO). b. Any gain or loss on a plan settlement is presented as part of other comprehensive income c. 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. d. Settlements increase the plan assets
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The net pension liability (PBO minus plan assets) is increased by: A. Service cost. B. Expected return on plan assets. C. Amortization of prior service cost. D. Cash contributions to plan assets.