Current accounting standards require that the discount rate used for pension plans be

Question

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Current accounting standards require that the discount rate used for pension plans be based on the rates at which the pension benefits could effectively be settled, which is usually a high-quality corporate bond rate. This is because the discount rate should reflect the time value of money and the credit risk associated with the pension plan's obligations, rather than the current or future market rates. Therefore, options A, B, and D are incorrect.

Current Accounting Standards Require That the Discount Rate Used for Pension