Only expected returns (and not actual returns )on pension investments flow through the income statement,and the rate of expected returns is selected at the discretion of company management.

Question

Quizplus · Accepted Answer

Only expected returns on pension investments flow through the income statement, and the rate of expected returns is indeed determined by company management. Actual returns are reported as a component of other comprehensive income.

Only Expected Returns (And Not Actual Returns )On Pension Investments