Question textUnder IFRS, which of the following statements is trueregarding accounting for defined benefit pension plansettlements?Select one:а.Settlements increase the plan assetsb.The difference between the change in the DBO and thechange in the plan assets as a result of the plansettlement is recognized as a gain or loss.c.Settlements increase the defined benefit obligation(DBO).d.Any gain or loss on a plan settlement is presented aspart of other comprehensive income Question textAccording to the IASB, recognition of a liability isrequired when the defined benefit obligation exceedsthe fair value of plan assets. Conversely, when the fairvalue of plan assets exceeds the defined benefitobligation, the Board4Select one:а.does not permit recognition of an asset.b.requires recognition of an asset if the excess fair valueof plan assets exceeds the corridor amount.C.requires recognition of an asset.d.recommends recognition of an asset but does notrequire such recognition.

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Question text Under IFRS, which of the following statements is true regarding accounting for defined benefit pension plan settlements? Select one: a. Settlements increase the plan assets b. The difference between the change in the DBO and the change in the plan assets as a result of the plan settlement is recognized as a gain or loss. с. Settlements increase the defined benefit obligation (DBO). d. Any gain or loss on a plan settlement is presented as part of other comprehensive income

Question text Under IFRS, which of the following statements is true regarding accounting for defined benefit pension plan settlements? Select one: a. Settlements increase the plan assets b. The difference between the change in the DBO and the change in the plan assets as a result of the plan settlement is recognized as a gain or loss. с. Settlements increase the defined benefit obligation (DBO). d. Any gain or loss on a plan settlement is presented as part of other comprehensive income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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