Postretirement Benefits Other Than Pensions

Question 1

The cost of retiree health and other postretirement benefits must be accrued if?

Answer 1

The obligation is attributable to employees’ services already rendered, employees’ rights accumulate or vest, payment is probable, and amount of benefits can be reasonably estimated

Question 2

What is the Accumulated Postretirement Benefit Obligation?

Answer 2

Present value of future benefits that have vested as of the measurement date

Question 3

What is the Expected Postretirement Benefit Obligation?

Answer 3

Present value of all future benefits expected to be paid as of the measurement date.

Question 4

Mneumonic for formula of net postretirement benefit expense/cost?

Answer 4

SIR AGE

Question 5

Transition to accrual for amortization or expense of the transition obligation can be done in 2 ways?

Answer 5

Immediate expense or delayed recognition

Question 6

Formula for Amortization of the Transition Obligation?

Answer 6

(APBO - FV of plan assets) / 20 years or average remaining service(greater of)