A government offering a defined benefit pension plan changes the plan terms with the result that pension benefit are increased. How would the resulting increase in the net pension liability be recognized in the financial statements in the year the plan is changed?
A. The increase in net pension liability would be expensed in the period the plan is changed.
B. The increase in net pension liability would be deferred and amortized over five years.
C. The increase in net pension liability would be deferred and amortized over the remaining service life of the employees.
D. The increase in net pension liability would be deferred and amortized over ten years.
Answer: A
You might also like to view...
In addition to the warehousing function, the three primary departments that you would expect to be part of a typical OE/S process are:
a. sales order, shipping, and credit b. sales order, shipping, and accounts payable c. sales order, credit, and accounts payable d. credit, shipping, and accounts payable
All of the following are advantages of a partitioned database except
a. increased user control by having the data stored locally b. deadlocks are eliminated c. transaction processing response time is improved d. partitioning can reduce losses in case of disaster
How should you identify an editorial?c
a. italic b. bold c. underline d. quotation marks
A major disadvantage to the use of census data in trading-area analysis is its _____
a. cost b. being limited to city and state data c. lack of comprehensiveness d. dated nature