In Computing the Service Cost Component of Pension Expense, the IASB

question 75

Multiple Choice

In computing the service cost component of pension expense, the IASB concluded that

• A)the accumulated benefit obligation provides a more realistic measure of the pension obligation on a going concern basis.
• B)a company should employ an actuarial funding method to report pension expense that best reflects the cost of benefits to employees.
• C)the defined benefit obligation using future compensation levels provides a realistic measure of present pension obligation and expense.
• D)all of these.

---

Definitions:

Refund

Money returned to a purchaser in response to a dissatisfaction with goods or services, or cancellation of a service.

Sales Talk

Persuasive conversations or pitches aimed at promoting and selling a product or service.

Odometer

A device used in vehicles to measure and display the total distance the vehicle has traveled.

Rescind

To revoke, cancel, or repeal a contract, agreement, or law.