Define prior service cost. How is it reported in the financial statements? How is it included in pension expense?
Answer to relevant QuestionsHow should gains or losses related to pension plan assets be recognized? How does this treatment compare to that for gains or losses related to the pension obligation?A pension plan is underfunded when the employer's obligation (PBO) exceeds the resources available to satisfy that obligation (plan assets) and overfunded when the opposite is the case. How is this funded status reported on ...The projected abenefit obligation was $80 million at the beginning of the year and $85 million at the end of the year. At the end of the year, pension benefits paid by the trustee were $6 million and there were no ...The pension plan was amended last year, creating a prior service cost of $20 million. Service cost and interest cost for the year were $10 million and $4 million, respectively. At the end of the year, there was a negligible ...Harrison Forklift's pension expense includes a service cost of $10 million. Harrison began the year with a pension liability of $28 million (underfunded pension plan).Required:Prepare the appropriate general journal entries ...
Post your question