Statement 1: The rate used to discount post‑employment benefit obligations (both funded and unfunded) shall be determined by reference to market yields at the end of the reporting period on normal quality corporate bonds. Statement 2: The return on plan assets is interest, dividends and other income derived from the plan assets, together with realized and unrealized gains or losses on the plan assets, less: (a) any costs of managing plan assets; and (b) any tax receivable by the plan itself, other than tax included in the actuarial assumptions used to measure the present value of the defined benefit obligation. Only Statement 1 is true. All statements are false. All statements are true. Only Statement 2 is true.
Statement 1: The rate used to discount post‑employment benefit obligations (both funded and unfunded) shall be determined by reference to market yields at the end of the reporting period on normal quality corporate bonds. Statement 2: The return on plan assets is interest, dividends and other income derived from the plan assets, together with realized and unrealized gains or losses on the plan assets, less: (a) any costs of managing plan assets; and (b) any tax receivable by the plan itself, other than tax included in the actuarial assumptions used to measure the present value of the defined benefit obligation. Only Statement 1 is true. All statements are false. All statements are true. Only Statement 2 is true.
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
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 1P: Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are...
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Statement 1: The rate used to discount post‑employment benefit obligations (both funded and unfunded) shall be determined by reference to market yields at the end of the reporting period on normal quality corporate bonds.
Statement 2: The return on plan assets is interest, dividends and other income derived from the plan assets, together with realized and unrealized gains or losses on the plan assets, less: (a) any costs of managing plan assets; and (b) any tax receivable by the plan itself, other than tax included in the actuarial assumptions used to measure the present value of the defined benefit obligation.
- Only Statement 1 is true.
- All statements are false.
- All statements are true.
- Only Statement 2 is true.
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