What Is True of the Interest Cost Component of the Pension

question 8

Multiple Choice

What is true of the interest cost component of the pension expense?

• A)ASPE specifies that enterprises should use the yields on high-quality corporate bonds.
• B)IFRS specifies that enterprises should use the yields on high-quality short-term corporate bonds.
• C)It represents the increase in the pension obligation due to the passage of time.
• D)IFRS specifies that enterprises should use the yields on medium-quality corporate bonds.

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