How Are the Accrued Benefits of a Defined Contribution Plan

question 55

Multiple Choice

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

• A) They are measured as the market value of the assets of the plan with no accumulated depreciation deducted.
• B) 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.
• C) 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.
• D) 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.
• E) None of the given answers.

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