In financial reporting for proprietary funds and at the government-wide level, the employer's pension expense for the period is equal to:

Question

Quizplus · Accepted Answer

At the government-wide level, the employer's pension expense for the period is equal to current year benefits, interest on prior pension liabilities, plan changes, amortization of deferred amounts, and other changes to the net pension liability, as per GASB Statement No. 68. The annual required contribution (ARC) is an actuarial calculation of the amount needed to fund the pension plan over the long-term, and it represents a funding benchmark rather than an expense recognition. The employer's contribution is the cash paid into the plan during the period, which may differ from the pension expense due to timing differences or other factors. Therefore, only choice C is correct.

In Financial Reporting for Proprietary Funds and at the Government-Wide