In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as

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Any difference between the pension cost charged to expense and the payments into the fund should be reported as accrued or prepaid pension cost. This is because the pension cost charged to expense is calculated based on actuarial assumptions, while payments into the fund relate to actual contributions made. The difference between the two represents either a shortfall or an excess in funding, which should be reported as a prepaid or accrued pension cost on the balance sheet.

In Accounting for a Pension Plan, Any Difference Between the Pension