Disclosures for a defined benefit pension plan should include which of the following?
I.number of beneficiaries
II.reconciliation of the ending value of the projected benefit obligation
III.reconciliation of the ending fair value of the plan assets
IV.the composition of plan assets
V.the discount rate used
VI.expected long-term rate of return on plan assets

Question

Disclosures for a defined benefit pension plan should include which of the following? 
I.number of beneficiaries
II.reconciliation of the ending value of the projected benefit obligation
III.reconciliation of the ending fair value of the plan assets
IV.the composition of plan assets
V.the discount rate used
VI.expected long-term rate of return on plan assets

Quizplus · Accepted Answer

The disclosures for a defined benefit pension plan should include the reconciliation of the ending value of the projected benefit obligation and the ending fair value of the plan assets (options II and III). This is because the plan's financial health is dependent on the plan assets being able to cover the projected benefit obligation.

The discount rate used and the expected long-term rate of return on plan assets are also important disclosures (options V and VI). The discount rate used affects the reported benefit obligation, while the expected rate of return on plan assets affects the amount of investment income recorded.

The number of beneficiaries (option I) and the composition of plan assets (option IV) may be relevant information but are not crucial disclosures for understanding the plan's financial health.

Disclosures for a Defined Benefit Pension Plan Should Include Which