Question: Please read the following statement and give an example: A pension expense recognized in a period exceed the amount funded, a liability account or Pension
Please read the following statement and give an example:
A pension expense recognized in a period exceed the amount funded, a liability account or Pension Liability is created. It is reported in the financial statement as either current liability or long term liability depending on if the liability is over a year or longer. Thus, the reverse happens is the expense is less than the funded amount. The company ins this case would have an Pension Asset in the Balance Sheet.
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