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What two accounting problems result from the nature

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Question - The Company sponsors a single-employer defined benefit pension plan. The plan provides that pension benefits are determined by age, years of service, and compensation. Among the components that should be included in the calculation, net pension cost is service cost, the interest cost, and actual return on plan assets.

What two accounting problems result from the nature of the defined benefit pension plan?

Why do these problems arise?

Reference no: EM133177985

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