Which of the following is not an element of pensions and other postemployment benefits that is difficult to estimate?
A)Projected lifetime of former employees that will receive a pension.
B)The future earnings of employees prior to retiring for defined benefit plans.
C)Long-term interest rates to discount future costs back to present value.
D)Current amounts earned on pension plan assets.

Question

Quizplus · Accepted Answer

Current amounts earned on pension plan assets are typically readily available and therefore not difficult to estimate. The other options (projected lifetime of former employees, future earnings of employees, and long-term interest rates) involve more uncertainty and require more assumptions in order to estimate.

Which of the Following Is Not an Element of Pensions