Question 1

When a pension plan is ended, the obligation is settled by transferring the assets to:

Accepted Answer

A) a trustee. 
B) a financial bank. 
C) each individual. 
D) None of these choices are correct. 
A) a trustee. 
B) a financial bank. 
C) each individual. 
D) None of these choices are correct.

Question 2

Defined benefit pension plans do not specify benefits per period after retirement, but base the pension benefits directly on the specified contributions.

Accepted Answer

A) True 
 B)False

Question 3

For a given employee group, the accumulated benefit method of funding for defined benefit plans results in increasingly larger contributions to the fund over time when compared to both the projected unit credit and level contribution methods.Assume that average salaries increase over time.

Accepted Answer

A) True 
 B)False

Question 4

ABC has a non-contributory, defined benefit pension plan.Data for 2014 were as follows: Pension plan assets (at fair value)January 1, 2014, $240,000, and December 31, 2014, $285,000; APO, January 1, 2014, $243,000 and December 31, 2014, $345,000.The accrued pension obligation was underfunded at the end of 2014 in the amount of:

Accepted Answer

A) $60,000. 
B) $15,000. 
C) $30,000. 
D) $45,000. 
A) $60,000. 
B) $15,000. 
C) $30,000. 
D) $45,000.

Question 5

Changes in defined benefit pension plans that reduce the expected years of future service of present employees are:

Accepted Answer

A) settlements. 
B) curtailments. 
C) terminations. 
D) adjustments. 
A) settlements. 
B) curtailments. 
C) terminations. 
D) adjustments.

Question 6

Usually, the amount of funding by an employer will exceed the benefits to be paid out to employees.

Accepted Answer

A) True 
 B)False

Question 7

Choose the correct statement concerning pensions (defined benefit)and other post-employment benefits.

Accepted Answer

A) Other post-employment benefits payments are more difficult to predict than are pension payments. 
B) The entire other post-employment benefits obligation must be recognized in the balance sheet whereas, in most cases, the pension obligation is not. 
C) Pension expense has six components; other post-employment benefits expense has only five components. 
D) Only pensions require a reconciliation of funded status to be disclosed. 
A) Other post-employment benefits payments are more difficult to predict than are pension payments. 
B) The entire other post-employment benefits obligation must be recognized in the balance sheet whereas, in most cases, the pension obligation is not. 
C) Pension expense has six components; other post-employment benefits expense has only five components. 
D) Only pensions require a reconciliation of funded status to be disclosed.

Question 8

Post-retirement benefits other than pensions must now be accounted for in a manner similar the way pensions are accounted for.

Accepted Answer

A) True 
 B)False

Question 9

What are plan settlements and curtailments and how should the gains and losses be accounted for?

Accepted Answer

Plan settlements and curtailments occur

Question 10

IFRS requires that the projected unit credit method be used for both funding purposes and accounting estimates.

Accepted Answer

A) True 
 B)False

Question 11

For income tax purposes, an employee would prefer to make contributions to a qualified pension plan than to a nonqualified pension plan.

Accepted Answer

A) True 
 B)False

Question 12

The accrued obligation at the beginning of the year was $456,000 and the current service cost for the year is $67,000.Assuming an interest factor of 6%, what is the accrued obligation at the end of the year?

Accepted Answer

A) $523,000 
B) $389,000 
C) $554,380 
D) $550,360 
A) $523,000 
B) $389,000 
C) $554,380 
D) $550,360

When a pension plan is ended, the obligation is settled by transferring the assets to:

Defined benefit pension plans do not specify benefits per period after retirement, but base the pension benefits directly on the specified contributions.

For a given employee group, the accumulated benefit method of funding for defined benefit plans results in increasingly larger contributions to the fund over time when compared to both the projected unit credit and level contribution methods.Assume that average salaries increase over time.

Changes in defined benefit pension plans that reduce the expected years of future service of present employees are:

Usually, the amount of funding by an employer will exceed the benefits to be paid out to employees.

Choose the correct statement concerning pensions (defined benefit)and other post-employment benefits.

Post-retirement benefits other than pensions must now be accounted for in a manner similar the way pensions are accounted for.

What are plan settlements and curtailments and how should the gains and losses be accounted for?

IFRS requires that the projected unit credit method be used for both funding purposes and accounting estimates.

For income tax purposes, an employee would prefer to make contributions to a qualified pension plan than to a nonqualified pension plan.

The accrued obligation at the beginning of the year was $456,000 and the current service cost for the year is $67,000.Assuming an interest factor of 6%, what is the accrued obligation at the end of the year?

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 a pension plan is ended, the obligation is settled by transferring the assets to:

Defined benefit pension plans do not specify benefits per period after retirement, but base the pension benefits directly on the specified contributions.

For a given employee group, the accumulated benefit method of funding for defined benefit plans results in increasingly larger contributions to the fund over time when compared to both the projected unit credit and level contribution methods.Assume that average salaries increase over time.

Changes in defined benefit pension plans that reduce the expected years of future service of present employees are:

Usually, the amount of funding by an employer will exceed the benefits to be paid out to employees.

Choose the correct statement concerning pensions (defined benefit)and other post-employment benefits.

Post-retirement benefits other than pensions must now be accounted for in a manner similar the way pensions are accounted for.

What are plan settlements and curtailments and how should the gains and losses be accounted for?

IFRS requires that the projected unit credit method be used for both funding purposes and accounting estimates.

For income tax purposes, an employee would prefer to make contributions to a qualified pension plan than to a nonqualified pension plan.

The accrued obligation at the beginning of the year was $456,000 and the current service cost for the year is $67,000.Assuming an interest factor of 6%, what is the accrued obligation at the end of the year?

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