Regarding actuarial assumptions,firms must disclose in notes to the financial statements all of the following except:
A) the discount rate used to compute the pension benefit obligation.
B) the expected rate of return on pension investments.
C) estimates of the number of retirees over the future 10 years.
D) the rate of compensation increase.

Question

Quizplus · Accepted Answer

While firms must disclose many actuarial assumptions related to their pension plans, estimates of the number of retirees over the future 10 years are not typically required. The other options listed (discount rate, expected return on investments, and rate of compensation increase) are typically among the assumptions that must be disclosed in notes to the financial statements.

Regarding Actuarial Assumptions,firms Must Disclose in Notes to the Financial