One component of net pension expense,unrecognized gains and losses,comes from the following sources:

Question

Quizplus · Accepted Answer

Unrecognized gains and losses in net pension expense come from both changes in pension assumptions (which affect the projected benefit obligation, or PBO) and the difference between expected and actual return on plan assets. Option A is incorrect because prior service cost is a separate component of pension expense, not part of gains and losses. Option B is incorrect because it only represents one source of gains and losses, not the full picture. Option C is incorrect because it only refers to PBO changes, and not the impact of asset returns on the plan.

One Component of Net Pension Expense,unrecognized Gains and Losses,comes from the Following