Regarding Actuarial Assumptions,firms Must Disclose in Notes to the Financial

question 21

Multiple Choice

Regarding actuarial assumptions,firms must disclose in notes to the financial statements all of the following except:

• A) the discount rate used to compute the pension benefit obligation.
• B) the expected rate of return on pension investments.
• C) estimates of the number of retirees over the future 10 years.
• D) the rate of compensation increase.

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Definitions:

Negative Goodwill

A financial situation where the purchase price of a company is less than the fair market value of its assets minus liabilities.

Acquisition Method

An accounting method used to account for business combinations, emphasizing the fair value of the acquired entity.

Identifiable Net Assets (INA) Method

A valuation technique used in business combinations and acquisitions, calculating the difference between the fair value of the acquiree's identifiable assets and liabilities.

Non-Controlling Interest (NCI)

The portion of equity in a subsidiary not owned by the parent company, representing minority shareholders' interest.