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:

Margin Of Safety Ratio

A financial metric that indicates how much sales can decline before a business reaches its break-even point.

Costs And Expenses Ratio

A financial metric that compares the costs and expenses of a company to its total revenue, indicating the efficiency of its operations.

Variable Costs

Costs that change in proportion to the good or service that a business produces, such as raw materials and direct labor.

Fixed Costs

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and insurance premiums.