Question

On 1/1/2016, Farsi Pistachios settled 50% of its projected benefit obligation of $20,000 by purchasing nonparticipating annuities at a cost of $12, 000. IThere was a $4,000 actuarial gain in AOCI prior to the remeasurement. Remeasurement of the plan obligations led to an increase of $2,000 in the PBO. 2What is the impact of the settlement on Farsi's 2016 earnings? A. A net loss of $1,000 B. A net loss of $2,000 C. A net gain of $1,000 D. A net gain of $2,000 For employers participating in multiple multi-employer plans, which one of the following is incorrect regarding their disclosure requirements? A. They may disclose the information about the significant multi-employer plans. B. They may disclose their total contributions made to all plans that are not individually significant C. They must disclose the names of all plans they participate D. They need to provide a description of the general nature of the multi- employer plans

Answer 1

9)

D. Net Gain of $2000

Actuarial Gain in OCI = $4000

Increase in PBO Due to Remeasurement of Plan $2000

Net Gain = 4000-2000

=2000

11)

C) They must disclose the names of all plans they participate.