Question: A government offering a defined benefit pension plan determines it is necessary to alter actuarial assumptions increasing the estimated cost of pension benefits. How would the resulting increase in the net pension liability be recognized in the financial statements in the year the plan is changed? The increase in net pension liability would be expensed in the period the plan is changed. The increase in net pension liability would be deferred and amortized over ten years. The increase in net pension liability would be deferred and amortized over five years. The increase in net pension liability would be deferred and amortized over the remaining service life of the employees.