Question: Evaluate this statement The excess of the actual return on
Evaluate this statement: The excess of the actual return on plan assets over the expected return decreases the employer's pension cost.
Answer to relevant QuestionsWhen accounting for pension costs, how should the payment into the pension fund be recorded? How does it affect the funded status of the plan?The EPBO for Branch Industries at the end of 2011 was determined by the actuary to be $20,000 as it relates to employee Will Lawson. Lawson was hired at the beginning of 1997. He will be fully eligible to retire with health ...Pension plan assets were $80 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, retiree benefits paid by the trustee were $6 million and cash invested in the pension fund was $7 ...Andrews Medical reported a net loss–AOCI in last year's balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $4 million. Also, the $8 million actual ...Pension data for Fahy Transportation Inc. include the following:Required:Assuming cash contributions were made at the end of the year, what was the amount of thosecontributions?
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