FASB Statement No. 87 states that prior service cost should be

Name: FASB Statement No. 87 states that prior service cost should be
Brand: Quizplus
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Question

Quizplus · Accepted Answer

FASB Statement No. 87 requires prior service cost to be amortized over the expected service period of the employees benefiting from the amendment or plan adoption. This means that the cost cannot be recognized all in one period, but rather needs to be spread out over the period of time when the employees receiving the benefit are expected to work for the company.