Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards?

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board standards mandate that employers must set aside the funds they expect to need for benefits to be paid after retirement. This is known as accrual accounting and is in contrast to the pay-as-you-go basis mentioned in option A, which is not a requirement according to these standards. Option B is incorrect as benefits are considered future cost obligations in accounting. Option C is irrelevant as it does not relate to accounting standards. Option D is incorrect as financial statements must be clear and transparent for outsiders to understand.

Which of the Following Is a Requirement Set for Employers