Question 1

A non-funded pension plan is one where the employee must bear a part of the cost of the plan.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:   The funded status of Jamieson's defined benefit plan as at December 31st,Year 1 is:

Accepted Answer

A)  $22,300 overfunded. 
B)  $22,300 underfunded. 
C)  $47,100 underfunded. 
D)  $24,800 overfunded. 
A)  $22,300 overfunded. 
B)  $22,300 underfunded. 
C)  $47,100 underfunded. 
D)  $24,800 overfunded.

Question 4

Current service cost is usually the largest single component of pension expense under a defined benefit pension plan.

Accepted Answer

A) True 
 B)False

Question 5

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 6

The amount of the expected return on plan assets is usually computed by multiplying the:

Accepted Answer

A)  ending market-related value of the plan assets by the expected long-term rate of return on plan assets. 
B)  beginning carrying value of the plan assets by the actuary's interest rate. 
C)  average carrying value of the plan assets by the expected long-term rate of return on plan assets. 
D)  beginning market-related value of the plan assets by the expected long-term rate of return on plan assets. 
A)  ending market-related value of the plan assets by the expected long-term rate of return on plan assets. 
B)  beginning carrying value of the plan assets by the actuary's interest rate. 
C)  average carrying value of the plan assets by the expected long-term rate of return on plan assets. 
D)  beginning market-related value of the plan assets by the expected long-term rate of return on plan assets.

Question 7

A pension plan that gives an employee the right to retirement benefits which are not contingent upon the employee remaining with the company provides vesting benefits to the employee.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Under a defined contribution pension plan,forfeitures are estimated in advance.

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

When should the cost of termination benefits be recognized?

Accepted Answer

The cost of termination benefi

Question 12

Under the simplified approach to accounting for defined benefit pension plans under ASPE,the actuarial cost method used for pension accounting will be different than that used for funding.

Accepted Answer

The answer of Under the simplified approach to accounting for...

Question 13

In order to be registered,a pension plan must be trusteed.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

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

Question 16

Employees are not allowed to make contributions to a defined contribution pension plan.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Under IFRS,net interest (finance)expense (revenue)with respect to defined benefit plans is best described as follows:

Accepted Answer

A)  The actual return on plan assets must be reflected as a reduction of pension expense or as finance revenue. 
B)  A discount rate is applied to the opening projected benefit obligation amount to impute an interest (finance) charge. This amount must be reflected as an increase to pension expense. 
C)  The net interest (finance) expense (revenue) with respect to defined benefit plans is the difference between the opening fair values of the plan assets and projected benefit obligation. If the value of the projected benefit obligation exceeds the fair value of the plan assets on that date, there will be an increase to pension expense or finance (interest) expense. If the reverse is true, will be a decrease to pension expense or an increase to finance (interest) revenue. 
D)  The net interest (finance) expense (revenue) with respect to defined benefit plans is the difference between the opening fair values of the plan assets and accumulated benefit obligation. If the value of the accumulated benefit obligation exceeds the fair value of the plan assets on that date, there will be an increase to pension expense. If the reverse is true, will be a decrease to pension expense. 
A)  The actual return on plan assets must be reflected as a reduction of pension expense or as finance revenue. 
B)  A discount rate is applied to the opening projected benefit obligation amount to impute an interest (finance) charge. This amount must be reflected as an increase to pension expense. 
C)  The net interest (finance) expense (revenue) with respect to defined benefit plans is the difference between the opening fair values of the plan assets and projected benefit obligation. If the value of the projected benefit obligation exceeds the fair value of the plan assets on that date, there will be an increase to pension expense or finance (interest) expense. If the reverse is true, will be a decrease to pension expense or an increase to finance (interest) revenue. 
D)  The net interest (finance) expense (revenue) with respect to defined benefit plans is the difference between the opening fair values of the plan assets and accumulated benefit obligation. If the value of the accumulated benefit obligation exceeds the fair value of the plan assets on that date, there will be an increase to pension expense. If the reverse is true, will be a decrease to pension expense.

Question 20

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 1 would show an accumulated other comprehensive income (AOCI)balance of:

Accepted Answer

A)  $3,000 dr. 
B)  $3,000 cr. 
C)  $2,700 dr. 
D)  $2,700 cr. 
A)  $3,000 dr. 
B)  $3,000 cr. 
C)  $2,700 dr. 
D)  $2,700 cr.

A non-funded pension plan is one where the employee must bear a part of the cost of the plan.

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

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31^st,Year 1 is:

Current service cost is usually the largest single component of pension expense under a defined benefit pension plan.

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.

The amount of the expected return on plan assets is usually computed by multiplying the:

A pension plan that gives an employee the right to retirement benefits which are not contingent upon the employee remaining with the company provides vesting benefits to the employee.

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.

Under a defined contribution pension plan,forfeitures are estimated in advance.

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.

When should the cost of termination benefits be recognized?

Under the simplified approach to accounting for defined benefit pension plans under ASPE,the actuarial cost method used for pension accounting will be different than that used for funding.

In order to be registered,a pension plan must be trusteed.

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

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

Employees are not allowed to make contributions to a defined contribution pension plan.

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

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

Under IFRS,net interest (finance)expense (revenue)with respect to defined benefit plans is best described as follows:

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 1 would show an accumulated other comprehensive income (AOCI)balance of:

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

A non-funded pension plan is one where the employee must bear a part of the cost of the plan.

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

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31st,Year 1 is:

Current service cost is usually the largest single component of pension expense under a defined benefit pension plan.

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.

The amount of the expected return on plan assets is usually computed by multiplying the:

A pension plan that gives an employee the right to retirement benefits which are not contingent upon the employee remaining with the company provides vesting benefits to the employee.

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.

Under a defined contribution pension plan,forfeitures are estimated in advance.

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.

When should the cost of termination benefits be recognized?

Under the simplified approach to accounting for defined benefit pension plans under ASPE,the actuarial cost method used for pension accounting will be different than that used for funding.

In order to be registered,a pension plan must be trusteed.

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

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

Employees are not allowed to make contributions to a defined contribution pension plan.

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

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

Under IFRS,net interest (finance)expense (revenue)with respect to defined benefit plans is best described as follows:

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 1 would show an accumulated other comprehensive income (AOCI)balance of:

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

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31^st,Year 1 is: