Under PAS 19, which of the following statement is true? I. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. II. Past service cost in the increase in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction or amendment of a defined benefit plan. II. Interest cost is the increase in the present value of the defined benefit obligation which arises because benefits are one period closer to settlement O Il and III only O I, Il and III O I and III only O I and Il only

Under PAS 19, which of the following statement is true? I. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. II. Past service cost in the increase in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction or amendment of a defined benefit plan. II. Interest cost is the increase in the present value of the defined benefit obligation which arises because benefits are one period closer to settlement O Il and III only O I, Il and III O I and III only O I and Il only

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 1MC: The actuarial present value of all the benefits attributed by the pension benefit formula to...

See similar textbooks

Similar questions

An increase in OCI related to plan assets occurs when: Select one: a. The accumulated benefit obligation is more than expected. b. The vested benefit obligation is less than expected. c. Retiree benefits paid out are less than expected. d. The return on plan assets is higher than expected. e. The employer contributes an amount greater than it was liable to do.
In computing the ending balance of defined benefit obligation, which of the following is deducted from the beginning balance? (1) Current service cost (2) Actuarial loss (3) Actuarial gain (4) Benefits paid 1 and 4 O 3 and 4 O 1 and 3 2 and 3
Which of the following does not increase the Projected Benefit Obligation? Actuarial loss on benefit obligation Current service costs Interest expense on benefit obligation Settlement of benefit obligation
1. Which of the following statements typifies defined contribution plans? Investment risk is borne by the corporation sponsoring the plan. O Retirement benefit is defined by a pension formula O The plans are more complex than defined benefit plans. O The employer's obligation is satisfied by making the periodic contribution to the plan.
According to PAS 19, how are other long-term benefits accounted for? Select the correct response: similar to defined benefit plans. similar to short-term employee benefits except that the cash flows are discounted similar to defined benefit plans except that all the components of the defined benefit cost is recognized in other comprehensive income similar to defined benefit plans except that all the components of the defined benefit cost is recognized in profit or loss
1. Which is incorrect concerning the recognition and measurement of a defined contribution plan?I. An entity shall not disclose the amount recognized as expense for a defined contribution plan.II. Any unpaid contribution at the end of the period shall be recognized as accrued liability. 2. Which is incorrect concerning the recognition and measurement of a defined benefit plan?I. The defined benefit plan must be fully funded.II. The obligation is measured on a discounted basis
Which of the following is/are true with regard to accounting for short-term employee benefits? Unpaid short-term benefits are reported as accrued under current liabilities at an undiscounted value. If the payment exceeds the undiscounted amount of the benefits, the excess is reported as prepayment under current assets. The benefits are reported as an expense under profit or loss, unless another standard requires or permits the cost of the benefits to be capitalized. Group of answer choices Only statement 1. All statements are true. Only statement 3. Only statement 2.
The interest on the defined benefit obligation component of defined benefit expense reflects the incremental borrowing rate of the employer. is the current market rate. may be stated implicitly or explicitly when reported. is the same as the expected return on plan assets.
S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined by the contributions paid by the employer, the participant, or both, and the operating efficiency and investment earnings of the fund. S2: Under a defined benefit plan, the payment of promised retirement benefits depends on the financial position of the plan and the ability of contributors to make future contributions to the plan as well as the investment performance and operating efficiency of the plan. Only S1 is true None is true Only S2 is true Both are true
Which of the following increases the Employee Benefit Expense? Actual return on plan assets Gain on remeasurement of plan assets Interest income on plan assets Loss on settlement of benefit obligation
A Defined Benefit Plan defines the following: O A. Your (employee) contributions to the plan B. The rate of return on assets (stocks, bonds, etc.) in the plan C. In most cases, is funded almost entirely by the employer D. Both A & C E. None of the above
Net interest cost is a component of pension expense under IFRS. How is net interest cost calculated? Select one: O a. The increase in the DBO over the period, net of the increase in the plan assets over the period. O b. Interest expense on the DBO, net of actual interest income earned on plan assets. O c. Interest expense on the defined benefit obligation (DBO), net of expected interest income earned on plan assets. O d. The increase in the DBO over the period, net of the increase in the plan assets over the period.