Why does it matter whether Social Security is considered a pension plan or an entitlement program? How does the FASAB direct that Social Security be reported? What unique issue does the federal government face in calculating the actuarial value of its Social Security obligation that a private corporation would not face in calculating the corresponding obligation of its pension plan?
Answer to relevant QuestionsWhat is meant by “inter-period equity,” and what is its consequence for ﬁnancial reporting?Select the best answer.1. The traditional business model of accounting is inadequate for governments and not-for-proﬁt organizations primarily because businesses differ from governments and not-for-proﬁt-organizations ...If an agency makes a loan at a below-market rate, what would be the nature of any expense recognized at the time of the loan? If it guaranteed a loan made by others, what would be the nature of any expense recognized at the ...The Business Development Corporation (BDC), a federal agency (ﬁctitious), makes loans to high-tech companies that satisfy speciﬁed criteria. The loans are intended to encourage research and development and are made at ...To help middle-income students ﬁnance the cost of their university educations, the Student Loan Authority guarantees student loans made by private banks. By guaranteeing the loans, the agency enables the banks to make the ...
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