pensions and Deferred Taxes.

Question 1

The vested benefits of an employee in a pension plan represent

Answer 1

Benefits that are not contingent on the employee’s continuing in the service of the employer.

Question 2

Note section disclosures in the financial statements for pensions do NOT require inclusion of…

Answer 2

The differences in executive and nonexecutive plans.

Question 3

A necessary condition for the recording of a pension liability is present when

Answer 3

Projected benefit obligation exceeds pension plan assets.

Underfunded…

Question 4

For a defined benefit pension plan, the discount rate used to calculate the projected benefit obligation is determined by the

Answer 4

Settlement rate.

Question 5

What is the Projected benefit obligation (PBO)?

Answer 5

Is The present value of pension benefits accrued to date using assumptions as to future compensation levels is the

Question 6

What is Accumulated benefit obligation?

Answer 6

is the accumulated benefit obligation is the present value of pension benefits accrued to date based on present salary levels.

Question 7

What is Accrued pension cost?

Answer 7

accrued pension cost is the balance sheet liability resulting when pension expense recognized exceeds pension funding.

Question 8

Under IFRS, how is the discount rate for pensions determined?

Answer 8

it is determined by the market yield at the end of the reporting period for high-quality corporate bonds having a similar term or maturity. not as U.S GAAP.

Question 9

defined benefit pension plan is subject to the pension liability recognition requirement. A pension liability must be recorded equal to the unfunded

Answer 9

Projected benefit obligation less the fair value of plan assets.

Question 10

health care cost trend rates should be disclosed for the

Answer 10

Following year

Years beyond the following year

Question 11

The prior service cost resulting from the plan amendment should be….

Answer 11

Amortized by assigning an appropriate amount to each future period of service and including this amortized amount in pension expense for each future period of service.

Question 12

what is the methods used in IFRS to account for defined benefit pension plans?

Answer 12

projected-unit-credit method.

Question 13

What is the present value of all future retirement payments attributed by the pension benefit formula to employee services rendered prior to that date only?

Answer 13

Accumulated benefit obligation.

Question 14

in accordance with IFRS. How is deferred income taxes is reported?

Answer 14

Deferred tax assets and liabilities may ONLY be classified as NON-current

Question 15

ncome Taxes, justification for the method of determining periodic tax expense is based on the concept of

Answer 15

Recognition of assets and liabilities.

Question 16

a company should report deferred income tax expense or benefit equal to the

Answer 16

Sum of the net changes in deferred tax assets and deferred tax liabilities.

explanation:When a deferred tax liability is recognized, deferred tax expense is increased. When a deferred tax asset is recognized, deferred tax expense is reduced. Reversals have the opposite effects.