Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on

Question:

Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employer's periodic pension expense in the year the event occurs.

Events
_____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.

Expected Return
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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Related Book For  answer-question

Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

Question Details
Chapter # 17
Section: Exercises
Problem: 3
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Question Posted: July 05, 2013 07:21:36