How Are the Accrued Benefits of a Defined Benefit Plan

question 48

Multiple Choice

How are the accrued benefits of a defined benefit plan measured?

• A) They are measured as the difference between the carrying value of the plan's assets and the liability to pay funds out to members on retirement.
• B) They are measured as the market value of the assets of the plan with no accumulated depreciation deducted.
• C) They are a residual amount: the difference between the carrying amount of the assets and the sum of the income tax and sundry liabilities of the plan.
• D) They are measured in a detailed actuarial review to determine the present value of expected future benefit payments arising as a result of membership of the fund up to measurement date.

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Definitions:

Port Facilities

Infrastructure and services provided at a port to support the loading, unloading, maintenance, and storage of ships and their cargoes.

Absolute Advantage

The ability of a country, company, or individual to produce a good or service more efficiently than competitors, using fewer resources.

Monopoly

Market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.

Less-developed Countries

Nations with a lower standard of living, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.