What are the two alternative views for presentation of pension plan assets by the employer? Which is consistent with GAAP?
State the two alternative views of pension plan assets’ presented by employer and identify the alternative that is consistent with GAAP.
Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
Identify the two alternative views of pension plan assets’ presented by employer and identify the alternative that is consistent with GAAP as follows:
The disclosure of pension plan asset is the main conceptual issue that is related to the pension asset. There are two conceptual issues related with the presentation of pension plan assets. They are,
a) Discharge the pension liability with the employer funding: In this case, the net asset of the pension plan is not considered as the asset of the employer...
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