FAR 6

Question 1

Pension

Overfunded

Answer 1

FV of assets > Projected Benefit Obligation

Question 2

Pension

Underfunded

Answer 2

FV of assets

Question 3

Pension Benefit Asset

Answer 3

Overfunded amount is the pension benefit asset

Only non-current assets (NO CURRENT ASSETS)

Question 4

Pension Benefit Liability

Answer 4

Underfunded amount is the pension benefit liability

Include current and non-current liability
Current liability - FV of assets

Question 5

Percentage of Completion Contract

Answer 5

Use when collection is not estimable

% of completion - total cost incurred to date/total cost (cost incur in the yr + estimated cost to complete)

Profit recognized = % of completion x gross profit (contract price - total cost)

profit to date = profit for current year - previous year recognized profit

ALL LOSSES ARE RECOGNIZED IMMEDIATELY (AT 100%)

Question 6

Percentage of Completion Contract

Current Asset vs Current Liability

Answer 6

Current Asset - actual cost incurred for the year + GP for the year > billing

Current Liability - actual cost incurred for the year + GP for the year

Question 7

Deferred tax liabilities and assets should be

Answer 7

Netted based on current deferred tax liabilities and assets,

Noncurrent deferred tax liabilities and assets