To improve usefulness of defined pension plans, GAAP requires disclosure of reconciliations of the beginning and ending amounts of the projected benefit obligation, including the amounts of the service cost, interest cost, actuarial gains and losses, benefits paid, and plan amendments.

Question

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GAAP (Generally Accepted Accounting Principles) requires detailed disclosures for defined benefit pension plans, including reconciliations of the beginning and ending balances of the projected benefit obligation. This includes showing the effects of service cost, interest cost, actuarial gains and losses, benefits paid, and plan amendments to ensure transparency and provide useful information to users of financial statements.

To Improve Usefulness of Defined Pension Plans, GAAP Requires Disclosure