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In Addition to Providing Pensions to Their Employees, Many Companies

question 64

Essay

In addition to providing pensions to their employees, many companies also offer postemployment benefits.These are benefits going to former employees after employment but before retirement.
Required:
Describe how the cost of these benefits is to be accounted for under current GAAP.


Definitions:

Cognitive Restructuring

A psychotherapeutic process of learning to identify and dispute irrational or maladaptive thoughts known as cognitive distortions.

Systematic Desensitization

A therapeutic technique used to reduce phobia or anxiety through gradual exposure to the feared object or situation.

Enclosed Space

A physical area that is surrounded by boundaries which can be natural or man-made, limiting access and egress.

Psychotherapist

A professional who treats mental health issues by psychological rather than medical means, often through talking therapies.

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