Evaluate this statement: The excess of the actual return on plan assets over the expected return decreases the employer’s pension cost.
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Q: pension
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Q: What two components of pension expense may be negative (i.e., reduce pension expense)?
A:
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Q: If pension expense recognized in a period exceeds the current amount funded by the employer, what…
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A: solution for above requirement are as follows
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A: The Answer :
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A: Defined Contribution Employer Contributes specific periodic amounts of contribution to the plan…
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A: Ans. Prior service cost refers to an extra or an added benefit to the pension plan of an employee.
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A: A projected benefit obligation is nothing but an actuarial measurement of present value of future…
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A: The question is related to Employee benefits. Define Contribution plan is plan where the employee…
Q: 8. Which of the following is a characteristic of a defined benefit plan? Post-employment benefits…
A: 8. Defined benefit plan is a plan designed to assure the employee certain benefit after his…
Q: Which of the following is/are true with regard to accounting for short-term employee benefits?…
A: Short-term employee benefits refer to those employee benefits that are supposed to be sorted out…
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A: Retirement plans are those in which amounts are invested periodically which accumulate until the age…
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A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…
Q: /hich is correct concerning the effect of asset ceiling in a defined enefit plan? O It is the excess…
A: Benifit asset : it recognises an asset measured as the amount of the surplus at the balance sheet…
Evaluate this statement: The excess of the actual return on plan assets over the expected return decreases the
employer’s pension cost.
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- What two components of pension expense may be negative (i.e., reduce pension expense)?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.It is a type of retirement plan where the benefit to be received by the employee is dependent on the contributions made to the plan and on the investment performance of the plan. The risk that the benefits to be received may be insufficient is retained by the employee. a. Defined contribution plan b. Defined benefit plan c. none of the above d. a or b
- In a Defined Contribution Plan, the investor (you) will know EXACTLY what the balance of your plan will be at retirement. True Falselook over the three most important components of the pension expense. The treatment of expected and actual return on plan assets, particularly when the actual return is greater than the expected, the amortization of prior service cost and the unexpected gain/ loss. Discuss the accounting treatment of these items with suitable examples.Which of the following is true of defined benefit plans? Select one: a. Contributions are not attributed to specified employees. b. Plan costs are predictable. c. They cannot provide benefits for past service. d. Employees assume the risks of preretirement inflation and investment performance.
- In a defined benefit plan, the retirement benefit will vary according to rates of return on pension fund reserves. True FalseGains and losses can occur with pension plans when: A) Either the PBO or the return on plan assets turns out to be different than expected. B) Either the ABO or the return on plan assets turns out to be different than expected. C) Either the PBO, the ABO, or the return on plan assets turns out to be different than expected. D) Either the PBO or the ABO turns out to be different than expected.Which of the following is not a component of pension expense? a. amount funded b. service cost c. expected return on plan assets d. interest cost
- 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 obligationA pension plan is underfunded when the employer’s obligation (PBO) exceeds the resources available to satisfy that obligation (plan assets) and overfunded when the opposite is the case. How is this funded status reported on the balance sheet if plan assets exceed the PBO? If the PBO exceeds 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