International Paper Companys 2016 annual report disclosed the following pension information for its U.S. plans: 2016 2015
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Question:
International Paper Company’s 2016 annual report disclosed the following pension information for its U.S. plans:
2016 | 2015 | 2014 | |
Discount rate | 4.10% | 4.40% | 4.10% |
Expected long-term return on plan assets | 7.75% | 7.75% | 7.75% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
- What effect does the discount rate of 4.10% have on the company’s pension liability?
- How does the change in the discount rate from 4.40% in 2015 to 4.10% in 2016 have on the company’s pension liability?
- What effect does the expected long-term return on plan assets of 7.75% have on the company’s pension liability? On the pension assets?
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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