Below is an excerpt from the note disclosure (excerpts from Note 12) of the Canadian National Railway

Question:

Below is an excerpt from the note disclosure (excerpts from Note 12) of the Canadian National Railway Company's December 31, 2011 annual report.
Below is an excerpt from the note disclosure (excerpts from
Below is an excerpt from the note disclosure (excerpts from

Instructions
Using the above disclosure notes, answer the following questions.
(a) Is the company's pension plan in a surplus or deficit status position at December 31, 2011? At December 31, 2010?
(b) What is the amount reported for the net periodic benefit cost for December 31, 2011, and December 31, 2010? What could cause this trend?
(c) What was the amount of cash flow used to fund the plan for 2011 and 2010? Why would there be differences in the annual funding amounts? How does this compare with the expense that is showing for the company for the related years?
(d) Discuss whether or not you believe that the pension expense is faithfully presented in the profit or loss statement for the years 2011 and 2010.

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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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