An entity operates a defined benefit pension plan and changes it at the beginning of the current
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Question:
An entity operates a defined benefit pension plan and changes it at the beginning of the current year to a defined contribution plan. The net pension liability after the plan amendment decreased compared to the net pension liability before the amendment. How the entity account for this change?
A. The entity recognizes a gain.
B. The entity does not recognize a gain.
C. The entity recognizes the gain as component of other comprehensive income.
D. The entity recognizes a gain to be amortized over the remaining service period of the employees
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
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