When accounting for pensions, delayed recognition of gains and losses in earnings achieves:

Question

Quizplus · Accepted Answer

Delayed recognition of gains and losses in earnings achieves income smoothing, which is a practice used to reduce fluctuations in reported earnings by spreading gains and losses over several years. This is done to create a more stable picture of a company's financial performance, which can be beneficial to investors and other stakeholders.

When Accounting for Pensions, Delayed Recognition of Gains and Losses