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Exam 17: Pensions and Other Postretirement Benefits

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Question 71

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To help assess the uncertainties that surround a defined benefit pension plan,corporations frequently hire a(n) :

A) CPA.
B) Attorney.
C) Investment analyst.
D) Actuary.

E) B) and C)
F) A) and D)

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Question 72

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Under IFRS,components of other comprehensive income:

A) Can be reported as part of a single statement of comprehensive income.
B) Are not permitted to be reported.
C) Must be reported in a separate statement of comprehensive income.
D) Can be reported as part of a statement of shareholders' equity.

E) C) and D)
F) A) and B)

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Question 73

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An underfunded pension plan means that the:

The EPBO for a particular employee on January 1,2016,was $30,000.The APBO at the beginning of the year was $6,000.The appropriate discount rate for this postretirement plan is 5%.The employee is expected to serve the company for a total of 25 years with 5 of those years already served as of January 1,2016.What is the APBO at December 31,2016?

When accounting for pensions,delayed recognition of gains and losses in earnings achieves:

The difference between pension plan assets and the PBO is equal to the funded status of the plan.

The net pension liability (PBO minus plan assets) is decreased by:

What were the retiree benefits paid?

Discuss the accounting for postretirement benefits prior to 1993 and under current GAAP.What are the key differences?

Eligibility requirements and the nature of benefits for postretirement health care plans usually are specified in the:

The following information relates to Schmidt Sausage Co.'s defined benefit pension plan during the current reporting year: Required: Determine the amount of pension plan assets at fair value on December 31.

Revenue and expense items and components of other comprehensive income can be reported in a single statement of comprehensive income using:

With respect to Ralph,what is Oregon's accumulated postretirement benefit obligation (APBO) at the end of 2016,rounded to the nearest dollar?

Bazerman Inc.has a postretirement health care benefit plan.On January 1 of the current calendar year,the following plan-related data were available. The rate of return on plan assets during the year was 12%.The expected return was 10%.The actuary revised assumptions regarding the APBO at the end of the year,resulting in a $42,000 increase in the estimate of the obligation. Required: 1)Calculate any amortization of net loss that should be included as a component of postretirement benefit expense for the current year. 2)Determine the net loss or gain as of December 31 of the current year.

The postretirement benefit obligation is the:

Accounting for postretirement health care benefits is similar,in most respects,to accounting for:

What is the 2016 pension expense for Havana's plan?

Conceptually,the service method provides a better matching of costs and benefits in amortizing prior service cost than does the straight-line method.

The following is an incomplete pension spreadsheet for the current year for Sparky Corporation. Required: 1)Complete the pension spreadsheet. 2)Prepare the journal entries to record pension expense and funding of plan assets for the year. 3)Prepare the journal entry/ies to record any gains or losses for the year.

Pension expense and funding amounts are both accounting decisions.