Quiz 17.05 – T/F Net Pension Asset Defined
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
A net pension asset is created when the plan assets of a company’s pension plan are less than its projected benefit obligation.
A net pension asset is created when the plan assets of a company’s pension plan are less than its projected benefit obligation.
When a pension plan is underfunded, the company will record a net loss in the other comprehensive income (OCI) section of its financial statements.
When accounting for pensions, the prior service cost is recognized as an expense over a period of several years.
In pension accounting, a net gain or net loss will impact pension expense only if it exceeds 10% of the pension benefit obligation or 10% of plan assets, whichever is lower. Experts Have Solved This Problem Please login or register to access this content.
Both the pension expense and funding amounts for a company’s pension plan are accounting decisions.
The expected postretirement benefit obligation (EPBO) represents the total benefits expected to be paid by the employer to plan participants, discounted to their present value.
Which of the following increases the net pension liability (PBO minus plan assets)?
Which of the following decreases the net pension liability (PBO minus plan assets)?
According to generally accepted accounting principles, what basis of accounting must be used for accounting for postretirement benefits other than pensions?
What is the typical basis for determining eligibility for postretirement health care benefits?