Under IFRS, Any Difference Between the Pension Expense and the Payments

question 24

Multiple Choice

Under IFRS, any difference between the pension expense and the payments into the fund should be reflected in

• A) a contra account to the net defined benefit liability/asset.
• B) an accrued actuarial liability.
• C) the net defined benefit liability/asset.
• D) a note to the financial statements only.

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Definitions:

Liabilities

Financial obligations owed by a business to creditors, including loans, accounts payable, and any other debts.

Owner's Equity

The amount of the business that belongs to the owners minus any liabilities owed by the business.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including loans, accounts payable, and bonds payable.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its total resources.