Which of the following is true with regard to pension accounting under GAAP and IFRS? Group...
Which of the following is true with regard to pension accounting under GAAP and IFRS? Group of answer choices
The accounting for defined-benefit pension plans is the same under GAAP and IFRS.
Accounting for defined-benefit pensions is typically a less important issue in the U. S. than in other parts of the world.
Prior service cost is recognized on the balance sheet under both GAAP and IFRS.
Prior service cost is amortized into income over the expected service lives of employees under both GAAP and IFRS.
Homework Answers
Answer
(d) Prior service cost is amortized into income over the expected service lives of employees under both GAAP and IFRS.
Explanation:
Prior service costs are the expenses which arise due to change in pension plans of earlier periods. It is amortized over the service life of employees under both GAAP and IFRS. Hence, option d s the correct answer.
In case of any doubt, please comment.
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