The expense associated with employees' post-retirement benefits is recorded only after the employee retires.

Question

Quizplus · Accepted Answer

The expense associated with employees' post-retirement benefits is recorded during the employees' working tenure through accrual accounting known as the cost-accumulation process. The accrued cost is then recognized as post-retirement benefit expense in the financial statements of the company each reporting period.

The Expense Associated with Employees' Post-Retirement Benefits Is Recorded Only