Question 1

When should the cost of termination benefits be recognized?

Accepted Answer

The cost of termination benefi

Question 2

Jamieson's balance sheet as per IFRS for Year 2 would show an accumulated other comprehensive income (AOCI)balance of:

Accepted Answer

A) $4,638 dr. 
B) $3,300 dr. 
C) $4,638 cr. 
D) $3,300 cr. 
A) $4,638 dr. 
B) $3,300 dr. 
C) $4,638 cr. 
D) $3,300 cr.

Question 3

Pension data for ABC for three separate cases were:   The funded status of the APO for each case is:

Accepted Answer

A) Choice 1 
B) Choice 2 
C) Choice 3 
D) Choice 4 
A) Choice 1 
B) Choice 2 
C) Choice 3 
D) Choice 4

Question 4

Factors affecting estimates of benefits under a post-retirement health care plan include all of the following except:

Accepted Answer

A) plan demographics. 
B) per capita claims cost by age. 
C) health care cost trend rates. 
D) discount rate. 
A) plan demographics. 
B) per capita claims cost by age. 
C) health care cost trend rates. 
D) discount rate.

Question 5

The full eligibility date for an employee covered in a non-pay related other post-employment benefits plan is:

Accepted Answer

A) the date the employee attains his or her final salary. 
B) the date the employee is eligible for the benefits he or she is expected to receive. 
C) the retirement date. 
D) the date the employee is eligible for the maximum benefit the plan has to offer. 
A) the date the employee attains his or her final salary. 
B) the date the employee is eligible for the benefits he or she is expected to receive. 
C) the retirement date. 
D) the date the employee is eligible for the maximum benefit the plan has to offer.

Question 6

In a defined contribution plan, employers run the risk of high pension contributions.

Accepted Answer

A) True 
 B)False

Question 7

The accumulated benefit and projected unit credit methods both result in increasing employer contributions to the pension plan over time.

Accepted Answer

A) True 
 B)False

Question 8

The accumulated benefit and projected unit credit methods both take into account employee salary changes over time.

Accepted Answer

A) True 
 B)False

Question 9

An employee of XYZ will receive retirement benefits of $1,000 per month if the employment period is 15 years.However, if the employment period is 20 years, the retirement benefits will be $1,300 per month.This is an example of a defined contribution pension plan.

Accepted Answer

A) True 
 B)False

Question 10

Total net pension expense recognized over the life of a pension plan will be in excess of the total amount paid into the pension fund.

Accepted Answer

A) True 
 B)False

Question 11

Bonnie joined a firm at age 25 and is expected to retire at 57.The post-retirement benefit plan provides the following coverage given the indicated years of service after age 30.   What is Bonnie's full eligibility date (her age when fully eligible)?

Accepted Answer

A) 60 
B) 55 
C) 57 
D) 50 
A) 60 
B) 55 
C) 57 
D) 50

Question 12

Current service costs are the main component of any defined contribution plan.

Accepted Answer

A) True 
 B)False

Question 13

A pension plan is fully funded when the assets in the pension fund are adequate to pay the current retirees.

Accepted Answer

A) True 
 B)False

Question 14

Choose the most complete description of the possible relationship(s)between the discount rate (D)and the expected long-term rate of return on plan assets (R)used for defined benefit pension plans.

Accepted Answer

A) D = R B) D > R C) D < R D) D can be equal to, greater than, or less than R for any given firm A) D = R B) D > R C) D < R D) D can be equal to, greater than, or less than R for any given firm

Question 15

In a non-contributory, defined benefit pension plan, the plan assets are composed of the employer's cumulative contributions less cumulative pension benefits paid from the fund.

Accepted Answer

A) True 
 B)False

Question 16

In the long run, the projected unit credit, accumulated benefit, and level contribution methods all provide the same funding.

Accepted Answer

A) True 
 B)False

Question 17

Under both IFRS and ASPE, the balance in net pension liability (asset)account will equal the funded status of the registered defined benefit plan in question.

Accepted Answer

A) True 
 B)False

Question 18

When a company offers termination benefits as the result of a restructuring plan, the special termination benefits should be:

Accepted Answer

A) amortized over the average remaining service period. 
B) amortized over a systematic and rational manner. 
C) recognized with normal pension expense. 
D) included with the restructuring costs on the income statement. 
A) amortized over the average remaining service period. 
B) amortized over a systematic and rational manner. 
C) recognized with normal pension expense. 
D) included with the restructuring costs on the income statement.

Question 19

The total gain or loss due to a curtailment should be recognized:

Accepted Answer

A) if a loss, when the employees terminate or the curtailment occurs. 
B) when it is probable that a curtailment will occur and the effects are reasonably estimable, for either a gain or a loss. 
C) immediately. 
D) if a gain, when it is probable that a curtailment will and the effects are reasonably estimable. 
A) if a loss, when the employees terminate or the curtailment occurs. 
B) when it is probable that a curtailment will occur and the effects are reasonably estimable, for either a gain or a loss. 
C) immediately. 
D) if a gain, when it is probable that a curtailment will and the effects are reasonably estimable.

Question 20

Pension plans are normally registered with the pension commissioner in the province of jurisdiction.

Accepted Answer

A) True 
 B)False

When should the cost of termination benefits be recognized?

Jamieson's balance sheet as per IFRS for Year 2 would show an accumulated other comprehensive income (AOCI)balance of:

Pension data for ABC for three separate cases were: The funded status of the APO for each case is:

Factors affecting estimates of benefits under a post-retirement health care plan include all of the following except:

The full eligibility date for an employee covered in a non-pay related other post-employment benefits plan is:

In a defined contribution plan, employers run the risk of high pension contributions.

The accumulated benefit and projected unit credit methods both result in increasing employer contributions to the pension plan over time.

The accumulated benefit and projected unit credit methods both take into account employee salary changes over time.

An employee of XYZ will receive retirement benefits of $1,000 per month if the employment period is 15 years.However, if the employment period is 20 years, the retirement benefits will be $1,300 per month.This is an example of a defined contribution pension plan.

Total net pension expense recognized over the life of a pension plan will be in excess of the total amount paid into the pension fund.

Bonnie joined a firm at age 25 and is expected to retire at 57.The post-retirement benefit plan provides the following coverage given the indicated years of service after age 30. What is Bonnie's full eligibility date (her age when fully eligible)?

Current service costs are the main component of any defined contribution plan.

A pension plan is fully funded when the assets in the pension fund are adequate to pay the current retirees.

Choose the most complete description of the possible relationship(s)between the discount rate (D)and the expected long-term rate of return on plan assets (R)used for defined benefit pension plans.

In a non-contributory, defined benefit pension plan, the plan assets are composed of the employer's cumulative contributions less cumulative pension benefits paid from the fund.

In the long run, the projected unit credit, accumulated benefit, and level contribution methods all provide the same funding.

Under both IFRS and ASPE, the balance in net pension liability (asset)account will equal the funded status of the registered defined benefit plan in question.

When a company offers termination benefits as the result of a restructuring plan, the special termination benefits should be:

The total gain or loss due to a curtailment should be recognized:

Pension plans are normally registered with the pension commissioner in the province of jurisdiction.

Financial Liabilities and Provisions

Financial Instruments: Long-Term Debt

Shareholders Equity

Financial Instruments: Complex Debt and Equity

Corporate Income Tax

Tax Losses

Leases

Earnings Per Share

Accounting Changes

Financial Statement Analysis

Filters

Exam 19: Post-Employment Benefits

When should the cost of termination benefits be recognized?

Jamieson's balance sheet as per IFRS for Year 2 would show an accumulated other comprehensive income (AOCI)balance of:

Pension data for ABC for three separate cases were: The funded status of the APO for each case is:

Factors affecting estimates of benefits under a post-retirement health care plan include all of the following except:

The full eligibility date for an employee covered in a non-pay related other post-employment benefits plan is:

In a defined contribution plan, employers run the risk of high pension contributions.

The accumulated benefit and projected unit credit methods both result in increasing employer contributions to the pension plan over time.

The accumulated benefit and projected unit credit methods both take into account employee salary changes over time.

An employee of XYZ will receive retirement benefits of $1,000 per month if the employment period is 15 years.However, if the employment period is 20 years, the retirement benefits will be $1,300 per month.This is an example of a defined contribution pension plan.

Total net pension expense recognized over the life of a pension plan will be in excess of the total amount paid into the pension fund.

Bonnie joined a firm at age 25 and is expected to retire at 57.The post-retirement benefit plan provides the following coverage given the indicated years of service after age 30. What is Bonnie's full eligibility date (her age when fully eligible)?

Current service costs are the main component of any defined contribution plan.

A pension plan is fully funded when the assets in the pension fund are adequate to pay the current retirees.

Choose the most complete description of the possible relationship(s)between the discount rate (D)and the expected long-term rate of return on plan assets (R)used for defined benefit pension plans.

In a non-contributory, defined benefit pension plan, the plan assets are composed of the employer's cumulative contributions less cumulative pension benefits paid from the fund.

In the long run, the projected unit credit, accumulated benefit, and level contribution methods all provide the same funding.

Under both IFRS and ASPE, the balance in net pension liability (asset)account will equal the funded status of the registered defined benefit plan in question.

When a company offers termination benefits as the result of a restructuring plan, the special termination benefits should be:

The total gain or loss due to a curtailment should be recognized:

Pension plans are normally registered with the pension commissioner in the province of jurisdiction.

Financial Liabilities and Provisions

Financial Instruments: Long-Term Debt

Shareholders Equity

Financial Instruments: Complex Debt and Equity

Corporate Income Tax

Tax Losses

Leases

Earnings Per Share

Accounting Changes

Financial Statement Analysis

Filters