In Computing the Service Cost Component of Pension Expense, the IASB

question 69

Multiple Choice

In computing the service cost component of pension expense, the IASB concluded that

• A)the accumulated benefit obligation provides a more realistic measure of the pension obligation on a going concern basis.
• B)a company should employ an actuarial funding method to report pension expense that best reflects the cost of benefits to employees.
• C)the defined benefit obligation using future compensation levels provides a realistic measure of present pension obligation and expense.
• D)All of these answer choices are correct.

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Definitions:

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Prefrontal Cortex

The frontmost region of the frontal lobes in the brain, involved in complex cognitive behavior, personality expression, decision making, and moderating social behaviour.

Temporal Lobes

Regions of the brain located beneath the temples, involved in processing auditory information and encoding memory.

Working Memories

A cognitive system that holds information temporarily available for processing tasks such as reasoning and comprehension.