The Major Difference in Accounting for Pensions Under ASPE and IFRS

question 78

Multiple Choice

The major difference in accounting for pensions under ASPE and IFRS is

• A) ASPE allows two approaches for accounting, immediate recognition approach and the deferral and amortization approach and IFRS only allows the immediate recognition approach.
• B) IFRS requires use of an actuarial and ASPE does not for calculation pension plans.
• C) ASPE includes the entire pension expense in net income and IFRS includes actuarial gains and losses as well as remeasurements in OCI.
• D) IFRS includes the entire pension expense in net income and ASPE includes actuarial gains and losses as well as remeasurements in OCI.

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Definitions:

Extraversion

A personality trait typified by sociability, talkativeness, assertiveness, and excitability; extraverts draw energy from interacting with others.

Agreeableness

A personality trait characterized by warmth, friendliness, and compassion towards others, one of the dimensions of the Big Five personality traits.

Cultural Products

Items or activities that arise from and reflect the customs, beliefs, and way of life of a society or group.

Openness To Experience

A personality trait that features characteristics such as imagination and insight, and a wide range of interests, as well as a willingness to try new things.