An employer does not have to report a liability on its balance sheet in a defined-benefit plan.

Question

Quizplus · Accepted Answer

An employer must report a liability for its defined-benefit plan on its balance sheet, as required by accounting standards such as GAAP or IFRS. The liability represents the estimated future obligation to pay retirement benefits to employees, and must be calculated and reported annually. Failure to report this liability can result in regulatory issues and misrepresentation of the company's financial condition.

An Employer Does Not Have to Report a Liability on Its