Which of the following is/are true?
A)An employer must recognize changes in the funded status of a defined benefit retirement plan on its balance sheet each period.
B)U.S.GAAP and IFRS do not require the employer to recognize changes in the funded status of a defined benefit retirement plan immediately in net income.
C)Changes in the net funded status of a defined benefit retirement plan because investment performance differs from expectations, or because of changes in actuarial assumptions, or in the retirement benefit formula, initially affect other comprehensive income.
D)Firms amortize the amounts in Other Comprehensive Income over the expected period of benefit as an adjustment to retirement plan cost.
E)all of the above

Question

Quizplus · Accepted Answer

All of the statements are true. Employers must recognize changes in the funded status of a defined benefit retirement plan on their balance sheet each period, but U.S.GAAP and IFRS do not require immediate recognition of changes in the funded status in net income. Any changes in the net funded status initially affect other comprehensive income because of differences between expected and actual investment performance, changes in actuarial assumptions, or changes in the retirement benefit formula. Firms amortize the amounts in Other Comprehensive Income over the expected period of benefit as an adjustment to retirement plan cost.

Which of the Following Is/are True