Amortization of any net gain or loss is included in pension expense of a given year if at the

Question

Quizplus · Accepted Answer

The correct answer is D because according to pension accounting standards, amortization of any net gain or loss is included in the pension expense of a given year if, at the beginning of the year, the cumulative net gain or loss exceeds 10% of the greater of the actual projected benefit obligation or the fair value of the plan assets. This is known as the "corridor" approach to recognizing gains and losses in pension accounting.

Amortization of Any Net Gain or Loss Is Included in Pension