Sponsoring a defined benefit pension plan


Net periodic pension cost recognized by an employer sponsoring a defined benefit pension plan may include a gain or loss component. Gains and losses requiring amortization:

a) Result only from experience different from that assumed.

b) Result only from changes in assumptions.

c) Do not include asset gains and losses not reflected in the market-related value of plan assets.

d) Only arise from unexpected changes in the projected benefit obligation.

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Accounting Basics: Sponsoring a defined benefit pension plan
Reference No:- TGS062706

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