If a company estimates that its expected return on pension plan assets will increase to 9.5% from 9.0%, this would be considered:
A)an extraordinary gain.
B)a change in accounting principle.
C)a prior period adjustment.
D)a change in accounting estimate.

Question

Quizplus · Accepted Answer

This is because the expected return on pension plan assets is an accounting estimate, and a change in the estimate is considered a change in accounting estimate.

If a Company Estimates That Its Expected Return on Pension