Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on
_____1. Interest cost.
_____2. Amortization of prior service cost–AOCI.
_____3. Excess of the expected return on plan assets over the actual return.
_____4. Expected return on plan assets.
_____5. A plan amendment that increases benefits is made retroactive to prior years.
_____6. Actuary's estimate of the PBO is increased.
_____7. Cash contributions to the pension fund by the employer.
_____8. Benefits are paid to retired employees.
_____9. Service cost.
_____10. Excess of the actual return on plan assets over the expected return.
_____11. Amortization of net loss–AOCI.
_____12. Amortization of net gain–AOCI.
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Question Posted: July 05, 2013 07:21:36