Analysts concerns with postretirement benefits include all of the following except:
A) should the underfunded postretirement benefit obligation be added to liabilities in assessing risk?
B) How reasonable are the firms' assumptions regarding health care cost increases?
C) Is the postretirement benefit fund adequately paying benefits.
D) Is the postretirement benefit fund generating returns consistent with the expected rate of return?

Question

Quizplus · Accepted Answer

Analysts' concerns with postretirement benefits include assessing the adequacy of the fund in paying benefits, the reasonableness of assumptions related to health care cost increases, and whether the fund is generating returns consistent with the expected rate of return. The underfunded postretirement benefit obligation is usually already added to liabilities, so it is not a concern for analysts.

Analysts Concerns with Postretirement Benefits Include All of the Following