What is a requirement set for employers under the Financial Accounting Standards Board standards?
A. Employers must fund benefits on a pay-as-you-go basis.
B. Employers must set aside the funds they expect to need for benefits to be paid after retirement.
C. Employers should encourage employees to participate in management functions.
D. Benefits must not appear as future cost obligations.
E. Financial statements should be made in such a way that outsiders cannot understand them.
Answer: B
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In CASE 7.2, Kurashige v. Indian Dunes, Inc (1988), plaintiff Kurashige, used Indian Dunes Park for motorcycle dirtbike riding. Prior to entering the park he signed a general release. Kurashige was injured and sued Indian Dunes. How did the court rule and why?
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