Accounting for postretirement benefits requires
A)no liability on the balance sheet.
B)no journal entries because the benefits are to be paid in the future.
C)the recognition of a liability equal to the present value of the expected payments for other postretirement benefits.
D)the recognition of a liability equal to the future value of the expected payments for other postretirement benefits.
E)none of the above

Question

Quizplus · Accepted Answer

Accounting for postretirement benefits requires the recognition of a liability equal to the present value of the expected payments for other postretirement benefits. This is because these benefits will be paid in the future and the company has an obligation to make these future payments, which creates a liability on the balance sheet.

Accounting for Postretirement Benefits Requires