Under international accounting standards,the pension-related asset or liability is recognized on the balance sheet as the

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Under international accounting standards, the pension-related asset or liability is recognized on the balance sheet as the net amount of the difference between the projected benefit obligation and plan assets and the deferred items (prior service cost, deferred pension gain/loss). This approach considers the impact of any past service costs or gains/losses on the plan's funded status. Choice B only considers the funded status of the plan, whereas choices C and D use different measures of the pension obligation (accumulated benefit obligation and vested benefit obligation) that may not reflect the entire obligation of the plan.

Under International Accounting Standards,the Pension-Related Asset or Liability Is Recognized