Which Statement Is Correct

question 17

Multiple Choice

Which statement is correct?

• A)An unexpected gain on plan assets represents an unfavourable difference between actual and expected amounts of income from pension assets.
• B)Actuarial gains and losses arising from the obligations of a pension plan derive from differences between the actual and expected values of the obligation.
• C)IFRS requires actuarial gains and losses to be recorded the income statement.
• D)An unexpected loss on plan assets represents a favourable difference between actual and expected amounts of income from pension assets.

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Definitions:

Deferred Creditor

An entity to whom a payment is owed but the payment is delayed or deferred to a future date.

Trade Creditors

Amounts owed by a business to its suppliers for goods and services purchased on credit.

Liquidator's Remuneration

Compensation paid to a liquidator for carrying out the process of winding up a company, including selling off assets, paying creditors, and distributing any remaining funds to shareholders.

Journal Entries

Records of financial transactions in the accounts of a business, providing a chronological order of all debits and credits.