The approach adopted by the accounting profession to measure a firm s pension obligation is the:
vested benefit obligation. |
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accumulated benefit obligation. |
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projected benefit obligation. |
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defined benefit obligation. |
A pension liability is reported when
the projected benefit obligation exceeds the fair value of pension plan assets. |
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the pension expense reported for the period is greater than the funding amount for the same period. |
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accumulated other comprehensive income exceeds the fair value of pension plan assets. |
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the accumulated benefit obligation is less than the fair value of pension plan assets. |
Answer 1)projected benefit obligation Answer 2)the projected benefit obligation exceeds the fair value of pension plan assets. |
The approach adopted by the accounting profession to measure a firm s pension obligation is the:...
Intermediate Accounting 2 - Chapter 20: Multiple Choice 1. A pension liability is reported when a. the accumulated benefit obligation is less than the fair value of pension plan assets. b. the projected benefit obligation exceeds the fair value of pension plan assets. c. accumulated other comprehensive income exceeds the fair value of pension plan assets. d. the pension expense reported for the period is greater than the funding amount for the same period. 2. The relationship between the amount...
Kingbird Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2017 $1,400 2,080 2,420 1,610 December 31, 2017 $2,080 2,970 3,550 2,520 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for Contributions (funding in 2017) Benefits paid in 2017 10% 810 the year 2017 410 650 190 (a) Compute the actual return on the...
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Intermediate Accounting 303 Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011. 2010 2011 Plan assets (fair value), December 31 $699,000 $849,000 Projected benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 140,000Cr ? Prior service cost, January 1 250,000 240,000 Service cost 60,000 90,000 Actual and expected return on plan assets 24,000 30,000 Amortization of prior service cost 10,000 12,000 Contributions (funding) 115,000 120,000 Accumulated...
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