All Past Service Costs Are Expensed

question 106

Multiple Choice

All past service costs are expensed. The rationale for doing this is that

• A) they are usually immaterial.
• B) they relate to non-vested services, so there is no justification for deferring their recognition to future periods.
• C) they relate to past services, so there is no justification for deferring their recognition to future periods.
• D) CRA will not allow them to be deferred.

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