What Are Actuarial Losses or Gains in a Defined Benefit

question 52

Multiple Choice

What are actuarial losses or gains in a defined benefit plan?

• A)Plan amendments that retrospectively improve pension plan benefits.
• B)Expected income earned on the pension plan assets.
• C)Difference arising between the actual and the expected value of plan obligations.
• D)Differences arising between the actual and expected values of the pension contributions.

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Definitions:

Single Investor Lease

A lease agreement in which a single investor owns the asset and leases it directly to a company, who then has the option to buy the asset at the end of the lease term.

Conditional Sales Agreement Lease

A lease agreement where the lessee has the option to purchase the leased asset at the end of the lease term under agreed-upon conditions.

Financial Leases

Long-term leases that effectively transfer the risks and rewards of ownership from the lessor to the lessee, almost like a loan arrangement.

Amortized

Refers to the process of gradually writing off the initial cost of an asset over a period.