The pension cost included in net income is the net periodic pension cost. How does it differ

Question:

The pension cost included in net income is the net periodic pension cost. How does it differ from the economic pension cost? What is the rationale for recognizing the smoothed net periodic pension cost instead of the economic pension cost in income?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Statement Analysis

ISBN: 978-0078110962

11th edition

Authors: K. R. Subramanyam, John Wild

See More Books

Question Posted: Jan 22, 2015 10:20 AM

See More Questions

What is economic rent? How does it differ from economic profit?
What is cost management, and how does it differ from management accounting and cost accounting?
What is practical capacity? How does it differ from budgeted capacity? How does it differ from actual capacity?
What is a Java package, and what is its purpose?
A sample of curium has an activity of 1,600 Bq. If the half-life of curium is 24.0 s, how long before its activity is 25.0 Bq?
Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: a. Compute MAD for each set of...
Assume that cash flow is given by $y=S_{T} W+\left(F_{T}-F_{0} ight) h$. Let $\sigma_{S}^{2}=\operatorname{var}\left(S_{T} ight), \sigma_{F}^{2}=\operatorname{var}\left(F_{T} ight)$, and...
When is a companys competitive advantage most likely to endure over time?
Grove Company has budgeted the following credit sales for the last six months of the current year. GROVE COMPANY BUDGETED CREDIT SALES FOR LAST SIX MONTHS OF CURRENT YEAR July $ 3 0 0 , 0 0 0 October...
Us Republic Corporation Balance Sheet, December 31, 20x3 Us Republic Corporation Statement Of Income And Retained Earnings, Year Ended December 31, 20x3 a. Fill in the 20X3 column in the table that...
What are the primary nonrecurring components of pension cost? Describe how current pension accounting defers and amortizes these nonrecurring components.
What does current pension accounting (SFAS158) recognize in the balance sheet? How is it different from what was recognized earlier (under SFAS 87)?
In the Wall Street Journal, open-end mutual funds are listed separately from other securities. They have their own quotation system where the primary data variables are the net asset value (NAV) and...
Mandy registers a domain name that is confusingly similar to the trademark of Security Services Corporation. She then offers to sell the domain name to Security Services. This is a. cybersquatting....
After the entry of a judgment, who can appeal? a. Only the winning party. b. Only the losing party. c. Either the winning party or the losing party. d. None of the above.
If a crime is punishable by death, it must be a felony. (True/False)
Standard Products, Inc., obtains a patent on a portable laser printer. This patent is violated if another firm reproduces the printer a. in its entirety only. b. either in its entirety or in part. c....
Dinh and Bill are involved in an automobile accident. Sue is a passenger in Bills car. Dinhs attorney wants to ask Sue, as a witness, some questions concerning the accident. Sues answers to the...
Evaluate the limit using the Basic Limit Laws and the limits 3 lim 2-0 Z-1 >0
Research an article from an online source, such as The Economist, Wall Street Journal, Journal of Economic Perspectives, American Journal of Agricultural Economics, or another academic journal. The...
How would revenue from sales of goods and services be classified? (a) Operating outflow. (b) Operating inflow. (c) Investing inflow. (d) Financing inflow.
The December 31, Year 8, trial balance of SwissCo Ltd., a Swiss company, follows (in euros, ). Additional Information: 1. SwissCo uses the periodic inventory system along with the FIFO costing method...
On December 31, Year 8, U.S. Dental Supplies (USDS) created a wholly owned foreign subsidiary, Funi, Inc. (FI), located in the country of Lumbaria. The condensed balance sheet of Funi as of December...
Describe the calculation of compensation expense associated with employee stock options. Is it necessary for a company to charge option-related compensation expense to income? Where in the income...
A retirement home in Florida costs $ 2 0 0 , 0 0 0 today. Housing prices in Florida are increasing at a rate of 4 % per year. Joe wants to buy the home in 8 years when he retires. Joe has $ 2 5 , 0 0...
1. (55 points) Answer the following questions about the steady state system shown below. (Don't worry about starting from 1st Law - use common engineering assumptions.) a) Is it appropriate to use...
Describe at least three ways that Guidance Software responds to and helps to manage changes in our technology - driven world? Describe what forecasting involves and list three limitations to...

The pension cost included in net income is the net periodic pension cost. How does it differ

Question:

Step by Step Answer:

The net periodic pension cost is a smoothed version of ...View the full answer

Financial Statement Analysis

Students also viewed these Managerial Accounting questions