Which of the Following Is Not True Regarding Pension Accounting

question 47

Multiple Choice

Which of the following is not true regarding pension accounting and reporting?

• A) Local governments include only the pension plans for which it is trustee in pension trust funds Statement of Fiduciary Net Assets.
• B) The pension trust fund Statement of Fiduciary Net Assets reflects the accrued actuarial liability (the excess of the projected benefit obligation over the net assets available for benefits).
• C) Pension investments are recorded at fair (market) value.
• D) None of the above; all are true.

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Definitions:

Profit-Sharing

A plan that distributes to employees a proportion of net profits earned by the organization.

Gain-Sharing

An incentive plan that rewards employees for their contributions to the company's success through improvements in productivity and cost savings.

Group Payout

Refers to a system of compensation based on the performance of a group or team, rather than individual performance alone.

Family-Friendly Benefits

Work benefits designed to support employees' needs regarding their family responsibilities, such as flexible working hours and parental leave.