GASB standards for recording pension expenses require a calculation of the difference between the pension plan's total liabilities and the pensions:

Question

Quizplus · Accepted Answer

GASB standards require the calculation of the difference between the pension plan's total liabilities and the plan's assets, as this provides information about the sustainability of the plan and whether there are sufficient assets to cover the promised benefits. Permanent life, accrued liabilities, and plans estimated useful life are not directly relevant to this calculation.

GASB Standards for Recording Pension Expenses Require a Calculation of the Difference