The pension expense of the current period is equal to:
A)Amounts paid to retired workers during the current period.
B)The estimated future pension benefits earned by today's workers during the current period.
C)The present value of the estimated future pension benefits earned by today's workers during the current period.
D)Cash payments made during the period to the trustee of the pension plan.

Question

Quizplus · Accepted Answer

The pension expense of the current period is the present value of the estimated future pension benefits earned by today's workers during the current period. It takes into account the current service cost, interest cost, expected return on plan assets, amortization of prior service costs, and gains or losses from changes in actuarial assumptions or experience. It is not simply the amount paid to retired workers or cash payments made to the trustee during the period.

The Pension Expense of the Current Period Is Equal To