A Recent Proposed Changed in Pension Reporting Is That

question 23

Multiple Choice

A recent proposed changed in pension reporting is that:

• A)a net pension liability is reported in an employer's government-wide financial statements
• B)the actuarial accrued liability is reported in an employer's government-wide statement of net position
• C)governments no longer have the option of reporting or not reporting the net pension liability in an employer's government-wide statement of net position
• D)changes in the net pension liability are reported as an expense in an employer's government-wide statement of activities

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Definitions:

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, each having reasonable knowledge of the relevant facts, and neither being under compulsion to transact.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.

Unilateral Mistake

A situation in contract law where only one party is mistaken about a basic assumption on which a contract is made, which can impact the enforceability of the contract.

Mistake

An incorrect belief or understanding regarding a fact, judgment, or event that can affect the validity of a contract.