In Deciding How to Recognize Prior Period Cost, Accounting Regulators

question 1

True/False

In deciding how to recognize prior period cost, accounting regulators opted to recognize the liability and reduce other comprehensive income, then amortize the prior service cost as a component of pension expense. The liability is reduced and other comprehensive income is increased as the prior service amount is amortized. This method was chosen in response to constituent arguments even though it violates the matching concept .

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Definitions:

Inbreeding

The mating of closely related individuals, which can increase the chance of offspring inheriting identical copies of genes from both parents, potentially leading to a greater risk of recessive genetic disorders.

Deleterious Alleles

Deleterious alleles are variants of genes that negatively affect the fitness or survival of an individual carrying them.

Homozygosity

The state of having two identical alleles at a particular gene locus, leading to the expression of a specific trait.

Fixing Beneficial Allele

The process by which a beneficial genetic variation becomes established, or fixed, in a population, often leading to evolutionary advantages.