When a company amends its defined benefit plan, and recognizes prior service, the projected benefit obligation is increased to recognize this additional liability.

Name: When a company amends its defined benefit plan, and recognizes prior service, the projected benefit obligation is increased to recognize this additional liability.
Brand: Quizplus
Rating: 4.9 (63 reviews)

Question

Quizplus · Accepted Answer

When the company recognizes prior service by amending its defined benefit plan, it increases the projected benefit obligation to account for the additional liability.

When a Company Amends Its Defined Benefit Plan, and Recognizes