Which of the Following Methods for the Recognition of Actuarial

question 15

Multiple Choice

Which of the following methods for the recognition of actuarial gains and losses are acceptable under AASB 119?
i. Immediate recognition of all actuarial gains or losses through profit or loss
ii. Recognition of all actuarial gains or losses outside profit or loss
iii. The corridor approach

• A) i
• B) i and ii
• C) ii and iii
• D) i, ii and iii

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Definitions:

Permanent/Temporary

Describes items or accounts within financial accounting that either persist over time (permanent) or are expected to be concluded within a certain period (temporary).

Normal Balance

The side (debit or credit) on which entries increase an account's balance, based on the accounting equation.

Financial Statement

A written record that conveys the financial activities and conditions of a business or individual, typically including the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

This refers to the nature of employment or status of objects wherein 'permanent' indicates indefinite duration and 'temporary' indicates a fixed duration.