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In Addition to Providing Pensions to Their Employees, Many Companies

question 40

Essay

In addition to providing pensions to their employees, many companies also offer other postemployment benefits.
These are benefits going to former employees after employment but before retirement.
Required:
Describe how the cost of these benefits is to be accounted for under current GAAP.


Definitions:

Across The Country

A phrase describing something that occurs or is present in various parts of a country.

Check 21

A federal law designed to enable banks to handle more checks electronically, which makes check processing faster and more efficient.

Electronically

Pertaining to technology related to the use and application of electronic devices and systems.

Federal Law

Legislation enacted by the national government of a country, which has precedence over state laws in areas specifically delegated to the national authority.

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