F7- M2 - Pension Benefits: Part 2

Question 1

Both ______and ______require that companies report the funded status of all pension plans on the balance sheet.

Answer 1

U.S. GAAP and IFRS

Question 2

A plan’s funded status is calculated as follows:

Answer 2

Fair value of plan assets – PBO (or DBO) Funded status

Question 3

A plan is ____________ when the PBO (or DBO) exceeds the fair value of the plan assets.

Answer 3

underfunded

Question 4

Under U.S. GAAP, _______ pension plans are aggregated and reported as a current liability (to the extent that benefits payable in the next 12 months exceed the fair value of the plan’s assets), a non-current liability, or both

Answer 4

underfunded

Question 5

Under IFRS, ______ pension plans are reported as a net defined benefit liability.

Answer 5

underfunded

Question 6

IFRSs do not specify whether the liability should be reported as _____ or _________

Answer 6

current or non-current

Question 7

A plan is _________ when the fair value of the plan assets exceeds the PBO (or DBO)

Answer 7

overfunded

Question 8

Under U.S. GAAP, overfunded pension plans are aggregated and reported as a ____________.

Answer 8

non-current asset

Question 9

Under IFRS, _________ pension plans are reported as a _____________.

Answer 9

overfunded ; net defined benefit asset

Question 10

IFRSs do not specify whether the asset should be reported as _______or _________.

Answer 10

current or non-current

Question 11

U.S. GAAP requires that the measurement date of the _____________ of a defined benefit pension plan must be aligned with the date of the employer’s balance sheet

Answer 11

plan assets and benefit obligations