Methods for accounting for the prior service cost


Response to the following questions:

1. List the conceptual issues of importance in regard to pension expense.

2. Conceptually, what are the five possible alternative methods for accounting for the prior service cost that arises from pension plan modifications? Which one is required by GAAP?

3. List the conceptual issues of importance in regard to pension liabilities and pension assets.

If possible, please give examples to better understand your response.

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Accounting Standards: Methods for accounting for the prior service cost
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