The FASB makes it mandatory to use only the years-of-service method for amortization of prior service cost.

Name: The FASB makes it mandatory to use only the years-of-service method for amortization of prior service cost.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The FASB does not mandate a specific method for amortization of prior service cost. Rather, it allows for the use of the years-of-service method or the straight-line method, as long as the chosen method is consistently applied.

The FASB Makes It Mandatory to Use Only the Years-Of-Service