What circumstances give rise to actuarial gains and losses

Assignment Help Financial Accounting
Reference no: EM13902089

COMPONENTS OF PENSION EXPENSE. Pension expense typically con- sists of five components. Answer the following questions related to each component.

a. Service cost: Is it possible for the service cost component to reduce pension expense for the year? Explain your answer.

b. Interest cost: Is it possible for the interest cost component to reduce pension expense for the year? Explain your answer.

c. Expected return on plan assets: GAAP requires firms to reduce pension expense each year by the expected, not the actual, return on investments. What is the logic employed by policymakers in reaching this decision?

d. Amortization of prior service cost: What is a prior service cost? Provide an example of a plan change that would generate an amount labeled prior service cost.

e. Amortization of actuarial gains and losses: What circumstances give rise to actuarial gains and losses?

Reference no: EM13902089

Questions Cloud

Determine its mean repair cost per collision : A company self-insures its large fleet of cars against collisions. To determine its mean repair cost per collision, it has randomly chosen a sample of 16 accidents. If the average repair cost in these accidents is $2,200 with a sample standard de..
Calculate the amount of postretirement health care benefit : Calculate the amount of the postretirement health care benefit obligation reported by the firm at the end of 2010. Discuss what classification category (or categories) on the balance sheet would appropriately include the obligation.
Write the equations for the these oxides : Write the equations for the these oxides when they dissolve in water: eg. oxide is SO2 Equation: SO2 (g) + H2O(l) --> H2SO3 (aq)
Consider a solution with a volume of 160 ml t : Consider a solution with a volume of 160 mL that contains 400 mg of NH3 and 980 mg of NH4NO3. (Given: Kb (NH3) = 1.8 x 10-5 ) What volume of 10 M HCl must be added to 100 mL of the original solution to change its pH to 9.00?
What circumstances give rise to actuarial gains and losses : Amortization of actuarial gains and losses: What circumstances give rise to actuarial gains and losses? What is a prior service cost? Provide an example of a plan change that would generate an amount labeled prior service cost.
What is the probability that the smaller of these values : Suppose distinct values are written on each of three cards, which are then randomly given the designations A, B, and C . The values on cards A and B are then compared. What is the probability that the smaller of these values is also smaller than t..
What is probability that at least one of events a or b occur : There is a 60 percent chance that the event A will occur. If A does not occur, there is a 10 percent chance that B will occur. What is the probability that at least one of the events A or B occur?
Calculate how fast the ships are approaching each other : Suppose at a given moment, Han Solo is travelling at 60 imperial units per minute and is 8 units away from the intersection and Darth Vader is traveling at 30 imperial units per minute and is 6 units away from the intersection. Calculate how fast ..
What amount of asset will be reported on the balance sheet : Given the following information, projected benefit obligation (PBO) and fair market value (FMV) of plan assets for Lee Company. What amount of asset or liability will be reported on the balance sheet at December 31, 2010?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate the current value of the company bonds

On the basis of this information estimate the current value of the Company bonds, the Preference shares, and the Ordinary shares.

  Interest expenditure in the debt service fund

A city sells $5 million of 20-year general obligation bonds on October 1, 2013. Interest on the debt is payable at the rate of 5% a year on the unpaid balance of the debt, every six months commencing March 31, 2014. How much should the city report as..

  Wise owls an nfpo began operations at the beginning of 20x1

wise owls an nfpo began operations at the beginning of 20x1 to provide free tutoring and homework assistance as well as

  What would appear in the year-end balance sheet related to

A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million.

  Which trend would be least meaningful in dell inc

In your opinion, which of these trends would be most meaningful to a potential investor in common stock of Dell, Inc.? Which trend would be least meaningful?

  Prepare a process priority map

Identify five functions/processes involved in achieving the mission of The State Board for Educator Certification and prepare a Process Priority Map

  Calculate the revenues for simpson co. for april

Calculate the Revenues for Simpson Co. for April and describe why cash receipt from customers can be different from revenues.

  Prepare journal entries to account for the transactions

Prepare journal entries to account for the transactions and information described in Exhibits 1-2 and 1-3 and prepare a revised statement of financial position after the journal entries prepared in Required 1 have been recorded.

  What is the companys overhead application rate

A manufacturing company uses an overhead allocation rate based on direct labor cost. The company's Goods in Process Inventory account has a $15,000 debit balance after all posting is completed, and the cost sheet of the one job still in process shows..

  Uses a process-cost accounting system

Masterson, Inc., which uses a process-cost accounting system, passes completed production from Department A to Department B for further manufacturing. The journal entry to record completed production in Department A requires:

  Ledger accounts-journal entries and trial balances

Chapter 3 Processing Accounting Information details how accounting information is processed. “Ledger accounts, journal entries, and trial balances are tools that allow a company to process vast amounts of data efficiently.”

  Property-plant and equipment

P & P Products is relocating their Human Resources department to an unused space that is closer to the main administration building. The 4,000 square foot space is empty and has not been used in several years. Jane, the VP of Personnel, is overseeing..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd