Which of the following is not correct regarding prior service costs?
A. A corridor concept similar to that for actuarial gains and losses is used for prior service.
B. Unlike the minimum amortization method for actuarial gains or losses, there is no corridor concept for prior service cost amortization.
C. They result from retroactive changes to a pension plan.
D. They can result in either an increase or decrease in the pension benefit obligation.
Answer: A
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