The Defined Benefit Obligation Is the Measure of Pension Obligation

question 23

Multiple Choice

The defined benefit obligation is the measure of pension obligation that

• A)is required to be used for reporting the service cost component of pension expense.
• B)requires pension expense to be determined solely on the basis of the plan formula applied to years of service to date and based on existing salary levels.
• C)requires the longest possible period for funding to maximize the tax deduction.
• D)is not sanctioned under international financial reporting standards for reporting the service cost component of pension expense.

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