When a Company Adopts a Pension Plan, Prior Service Costs

question 57

Multiple Choice

When a company adopts a pension plan, prior service costs should be charged to

• A) accumulated other comprehensive income (PSC).
• B) operations of prior periods.
• C) Other comprehensive income (PSC).
• D) retained earnings.

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Definitions:

Law of Equity

A system of law that supplements the common law and rectifies situations where the application of the common law would be unjust.

Ontario Court

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