Question textThe relationship between the amount funded and theamount reported for pension expense is as followsSelect one:а.pension expense will be less than the amount funded.b.pension expense will be more than the amount funded.c.pension expense must equal the amount funded.d.pension expense may be greater than, equal to, or lessthan the amount funded. Question textBelle Corp. is a publicly accountable entity that operates a definedbenefit plan for its employees. Data relating to the pension plan is asfollows:Defined benefit obligation (DBO), December 31,$22,300,0002019Plan assets, December 31, 201924,500,000Current service costs (CSC), December 31, 20202,200,000Benefits paid to retirees, December 31, 20201,000,000Actual return on plan assets, December 31, 2020800,000DBO, December 31, 2020, per actuaryYield on high-quality corporate bonds24,000,0004%What is the total gain or loss that will flow to the othercomprehensive income (OCI) part of the statement of comprehensiveincome for the year ended December 31, 2020?Select one:12a.$392,000 gainb.$572,000 lossc.$212,000 gaind.$180,000 loss||

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Question text The relationship between the amount funded and the amount reported for pension expense is as follows Select one: а. pension expense will be less than the amount funded. b. pension expense will be more than the amount funded. с. pension expense must equal the amount funded. d. pension expense may be greater than, equal to, or less than the amount funded.

Question text The relationship between the amount funded and the amount reported for pension expense is as follows Select one: а. pension expense will be less than the amount funded. b. pension expense will be more than the amount funded. с. pension expense must equal the amount funded. d. pension expense may be greater than, equal to, or less than the amount funded.

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 12GI

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Question text The computation of pension expense includes all the following except Select one: 13 a. interest on plan assets b. all of these are included C. service cost component measured using current salary levels. d. interest on defined benefit obligation.
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.
b. How does each component of pension expense affect pension expense during the period (increase, decrease, or uncertain)? c. What is the difference between the accumulated pension obligation and the projected pension obligation? d. What determines whether a pension plan is underfunded or overfunded?
37. The relationship between the amount funded and the amount reported for pension expense is as follows: pension expense will be less than the amount funded. pension expense must equal the amount funded. pension expense may be greater than, equal to, or less than the amount funded. pension expense will be more than the amount funded.
QUESTION 1 Explain the following terms. Include the definition, how they are calculated, treated in the accounting records (general ledger) and shown in the financial statements. Defined Benefit Obligation Plan Assets Pension Asset/Liability  Pension Expense  Other Comprehensive Income (OCI) gain/loss
QUESTION 3 a) Explain the following terms as used in IAS 19 Employee Benefits: (i) The term 'defined benefit pension plan'. (ii) The basis to be adopted in measuring scheme assets. (iii) The basis to be adopted in measuring scheme liabilities.
What are the four basic components of pension expense? Select one: A. Service cost, benefits paid, expected return on plan assets, and amortization of deferred amounts B. Service cost, benefits paid, actual return on plan assets, and amortization of deferred amounts C. Service cost, interest cost, actual return on plan assets, and amortization of deferred amounts D. Service cost,interest cost, expected return on plan assets, and amortization of deferred amounts E. None of the above
Which of the following journal entries would be recorded when an entity contributes cash to its defined benefit pension plan? Select one: а. DR Cash; CR Net defined benefit liability O b. DR Pension assets; CR Cash Ос. DR Cash in trust; CR Cash O d. DR Net defined benefit liability; CR Cash
38. In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as as other comprehensive income (G/L). as accumulated other comprehensive income (PSC). pension asset/liability. an offset to the liability for prior service cost.
In computing the interest component of pension expense, what interest rates may be used?
Explain how cash-basis accounting for pension plans differsfrom accrual-basis accounting for pension plans.Why is cash-basis accounting generally considered unacceptablefor pension plan accounting?
Any past service costs should be included in the a) pension expense of past periods. b) pension expense of the current period. c) pension expense of current and future periods. d) plan assets.