Which Statement Is Correct

question 17

Multiple Choice

Which statement is correct?

• A)An unexpected gain on plan assets represents an unfavourable difference between actual and expected amounts of income from pension assets.
• B)Actuarial gains and losses arising from the obligations of a pension plan derive from differences between the actual and expected values of the obligation.
• C)IFRS requires actuarial gains and losses to be recorded the income statement.
• D)An unexpected loss on plan assets represents a favourable difference between actual and expected amounts of income from pension assets.

---

Definitions:

Equipment

Tools, machinery, or other durable items necessary for the completion of a task or the operation of a business.

Resale Value

The estimated market value of an asset if sold again in the future.

Office Furniture

Desks, chairs, tables, cabinets, and other furnishings used in an office setting to facilitate work and storage.

Double-Declining-Balance

An accelerated method of depreciation which doubles the normal depreciation rate, reducing the asset's book value more quickly.