Excess pension assets should be treated as operating assets,and unfunded pension liabilities should be treated as a debt equivalent.With respect to taxes,valuations should be done on a pretax basis.

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Quizplus · Accepted Answer

Excess pension assets are not typically treated as operating assets because they are related to the financing of the pension plan, not the core operations of the business. Unfunded pension liabilities are indeed treated as a debt equivalent because they represent future outflows. Valuations, especially for financial reporting purposes, often consider post-tax impacts to reflect the net economic effect on the entity.

Excess Pension Assets Should Be Treated as Operating Assets,and Unfunded