The Following Facts Apply to Questions

question 39

Multiple Choice

The following facts apply to questions :
XYZ Company,a calendar-year entity,amends its defined benefit pension plan on January 1,2010 and must recognize the increase in past service costs of its vested and non-vested employees as of that date in the calculation of its net 2010 pension expense (or revenue) . The pertinent facts as of January 1,2010 are:
-Under IAS 19,with respect to the calculation of net pension expense (or revenue) ,which of the following components is NOT counted?

• A)actual annual return on plan assets
• B)current service cost
• C)current period actuarial gains and losses
• D)past service cost recognized in the current period

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted by alpha (α) and used as a threshold for determining statistical significance.

Test Statistic

The calculated value used to decide whether to reject the null hypothesis in hypothesis testing.

Normal Distribution

A bell-shaped curve that represents a distribution of values symmetrically around the mean.

Alternative Hypothesis

The hypothesis that suggests there is a statistically significant effect or relationship present, opposite to the null hypothesis.