Question 1: In an article in Business week prior to new rules related to pensions, it was reported that the discount rates used by the largest 200 companies for pension reporting ranged from 5% to 11%. How can such a situation exist, and does GAAP alleviate this problem?
Question 2: An article indicated that when new GAAP rules were issued related to pensions; it caused an increase in the liability for pensions for approximately 20% of companies. Why might this situation occur?
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