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In Addition to Providing Pensions to Their Employees, Many Companies

Question 63

Essay

In addition to providing pensions to their employees, many companies also offer postemployment benefits.These are benefits going to former employees after employment but before retirement.
Required:
Describe how the cost of these benefits is to be accounted for under current GAAP.

Correct Answer:

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The cost of these benefits is accrued du...

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