Question 1

Employers who provide contractual termination benefits must recognize a loss and a related liability when:

Accepted Answer

A)  the employees accept the termination benefit offer. 
B)  the termination benefit can be reasonably estimated. 
C)  it is probable that employees will be entitled to the benefit and the amount of the benefit can be reasonably estimated. 
D)  the termination occurs. 
A)  the employees accept the termination benefit offer. 
B)  the termination benefit can be reasonably estimated. 
C)  it is probable that employees will be entitled to the benefit and the amount of the benefit can be reasonably estimated. 
D)  the termination occurs. A

Question 2

The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%,what is the accrued obligation at the end of the year?

Accepted Answer

A)  $404,120 
B)  $381,000 
C)  $403,860 
D)  $363,660 
A)  $404,120 
B)  $381,000 
C)  $403,860 
D)  $363,660 A

Question 3

A trustee is independent and receives the pension contribution from the employer and invests it in accordance with provincial regulations.

Accepted Answer

A) True 
 B)False  True

Question 4

XYZ sponsors a defined contribution plan for its employees.On January 1,Year 1,the company paid $120,000 to the plan's trustee.The trustee called for annual payments of $90,000 to be made annually into the plan.Which of the following best describes the effects of this plan on XYZ's Year 1 financial statements?

Accepted Answer

A)  XYZ would record pension expense of $120,000 and a current asset of $30,000. 
B)  XYZ would record pension expense of $90,000 and a current asset of $30,000. 
C)  XYZ would record pension expense of $90,000 and a non-current asset of $30,000. 
D)  XYZ would record pension expense of $120,000 and no balance sheet amounts. 
A)  XYZ would record pension expense of $120,000 and a current asset of $30,000. 
B)  XYZ would record pension expense of $90,000 and a current asset of $30,000. 
C)  XYZ would record pension expense of $90,000 and a non-current asset of $30,000. 
D)  XYZ would record pension expense of $120,000 and no balance sheet amounts.

Question 5

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

Accepted Answer

Plan settlements and curtailments occur

Question 6

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:   Jamieson's balance sheet as per IFRS for Year 2 would show an accumulated other comprehensive income (AOCI)balance of:

Accepted Answer

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

Question 7

All of the following are relevant policy disclosures suggested by the AcSB except:

Accepted Answer

A)  a reconciliation of pension plan assets from the beginning to the end of the year. 
B)  description of how expected return on pension plan assets is calculated. 
C)  actual return on plan assets during the year. 
D)  principle actuarial assumptions. 
E)  the risk profile of the employee group. 
A)  a reconciliation of pension plan assets from the beginning to the end of the year. 
B)  description of how expected return on pension plan assets is calculated. 
C)  actual return on plan assets during the year. 
D)  principle actuarial assumptions. 
E)  the risk profile of the employee group.

Question 8

Recognition of pension expense is primarily based on the:

Accepted Answer

A)  cost principle. 
B)  revenue principle. 
C)  matching principle. 
D)  full disclosure principle. 
A)  cost principle. 
B)  revenue principle. 
C)  matching principle. 
D)  full disclosure principle.

Question 9

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 10

Gains and losses from plan settlements and curtailments should be:

Accepted Answer

A)  amortized over the average remaining service period. 
B)  amortized over a systematic and rational manner. 
C)  recognized in income immediately. 
D)  deferred to the balance sheet. 
A)  amortized over the average remaining service period. 
B)  amortized over a systematic and rational manner. 
C)  recognized in income immediately. 
D)  deferred to the balance sheet.

Question 11

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

Accepted Answer

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

Question 12

Past service costs that have vested must be deferred and amortized through pension expense over time,while gains or losses on plan curtailments must be immediately recognized.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

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 15

How does a trustee impact upon accounting for defined pension plans?

Accepted Answer

A trustee is independent and receives th

Question 16

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 17

A change in actuarial assumptions is the only possible cause for an actuarial gain or loss.

Accepted Answer

A) True 
 B)False

Question 18

Conceptually,the employer's current pension obligation if the pension plan is discontinued is the:

Accepted Answer

A)  accrued pension obligation. 
B)  accumulated benefit obligation. 
C)  vested benefit obligation. 
D)  underfunded pension cost. 
A)  accrued pension obligation. 
B)  accumulated benefit obligation. 
C)  vested benefit obligation. 
D)  underfunded pension cost.

Question 19

When a settlement gain or loss arises due to closing a business segment it is recognized as a debit or credit to (in):

Accepted Answer

A)  accrued pension obligation. 
B)  other costs within discontinued operations. 
C)  pension expense. 
D)  accrued/prepaid pension cost. 
A)  accrued pension obligation. 
B)  other costs within discontinued operations. 
C)  pension expense. 
D)  accrued/prepaid pension cost.

Question 20

Under IFRS,net interest (finance)revenue or expense on defined benefit obligations must always be included within pension expense.

Accepted Answer

A) True 
 B)False

Employers who provide contractual termination benefits must recognize a loss and a related liability when:

The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%,what is the accrued obligation at the end of the year?

A trustee is independent and receives the pension contribution from the employer and invests it in accordance with provincial regulations.

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

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 2 would show an accumulated other comprehensive income (AOCI)balance of:

All of the following are relevant policy disclosures suggested by the AcSB except:

Recognition of pension expense is primarily based on the:

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

Gains and losses from plan settlements and curtailments should be:

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

Past service costs that have vested must be deferred and amortized through pension expense over time,while gains or losses on plan curtailments must be immediately recognized.

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?

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

How does a trustee impact upon accounting for defined pension plans?

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.

A change in actuarial assumptions is the only possible cause for an actuarial gain or loss.

Conceptually,the employer's current pension obligation if the pension plan is discontinued is the:

When a settlement gain or loss arises due to closing a business segment it is recognized as a debit or credit to (in):

Under IFRS,net interest (finance)revenue or expense on defined benefit obligations must always be included within pension expense.

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

Exam 8: Cost-Based Inventories and Cost of Sales

Employers who provide contractual termination benefits must recognize a loss and a related liability when:

The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%,what is the accrued obligation at the end of the year?

A trustee is independent and receives the pension contribution from the employer and invests it in accordance with provincial regulations.

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

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 2 would show an accumulated other comprehensive income (AOCI)balance of:

All of the following are relevant policy disclosures suggested by the AcSB except:

Recognition of pension expense is primarily based on the:

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

Gains and losses from plan settlements and curtailments should be:

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

Past service costs that have vested must be deferred and amortized through pension expense over time,while gains or losses on plan curtailments must be immediately recognized.

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?

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

How does a trustee impact upon accounting for defined pension plans?

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.

A change in actuarial assumptions is the only possible cause for an actuarial gain or loss.

Conceptually,the employer's current pension obligation if the pension plan is discontinued is the:

When a settlement gain or loss arises due to closing a business segment it is recognized as a debit or credit to (in):

Under IFRS,net interest (finance)revenue or expense on defined benefit obligations must always be included within pension expense.

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters