Federal Agencies That Participate in Defined Benefit Pension Plans for Their

Federal agencies that participate in defined benefit pension plans for their federal employees should recognize an expense:

A) When the benefits are due and payable on the modified accrual basis of accounting.
B) Equal to the service cost for their employees for the accounting period less the amount contributed to the plan by the employees.
C) When cash is paid to retirees.
D) Equal to the actuarial present value of benefits earned by the employees during the current period and a portion expected to be earned by employees in the future until their retirement date.