Reading 24: Employee Compensation: Post-Employment and Share-

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

2^#

发表于 2011-3-9 15:34 | 只看该作者

An analyst views the assumptions made by a company regarding its pension liabilities as unrealistic, and thinks the discount rate and expected rate of return should both be increased. The most likely effect of increasing the discount rate and expected rate of return on the vested benefit obligation (VBO) is:

Discount rate

Expected rate of return

Increase

No effect

Decrease

No effect

The VBO will decrease because a higher discount rate will cause the present value of the future obligations to decline. There will be no effect from changing the expected rate of return because expected return relates to the pension funding and expense, not to the size of the obligation.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

3^#

发表于 2011-3-9 15:34 | 只看该作者

The vested benefit obligation is defined as the:

A)	amount of the accumulated benefit obligation (ABO) to which the employee is entitled based on the company’s vesting schedule.

B)	actuarial present value of all future pension benefits earned to date and based on current salary levels, ignoring future increases.

C)	actuarial present value of all future pension benefits earned to date based on expected future salary increases.

The vested benefit obligation is defined as the amount of the accumulated benefit obligation (ABO) to which the employee is entitled based on the company’s vesting schedule.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

4^#

发表于 2011-3-9 15:35 | 只看该作者

The accumulated benefit obligation is defined as the:

A)	actuarial present value of all future pension benefits earned to date based on expected future salary increases.

B)	increase in the projected benefit obligation (PBO) due to the passage of time.

C)	actuarial present value of all future pension benefits earned to date and based on current salary levels.

The accumulated benefit obligation is defined as the actuarial present value of all future pension benefits earned to date and based on current salary levels, ignoring future increases.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

5^#

发表于 2011-3-9 15:35 | 只看该作者

Which of the following is NOT a measure of pension plan liabilities for a defined benefit pension plan?

A)	Deferred benefit obligation.

B)	Vested benefit obligation.

C)	Projected benefit obligation.

Deferred benefit obligation is not one of the measures of pension plan liabilities for a defined benefit pension plan.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

6^#

发表于 2011-3-9 15:35 | 只看该作者

The projected benefit obligation (PBO) is defined as the:

A)	actuarial future value of all post-retirement healthcare benefits earned to date.

B)	actuarial present value of all future pension benefits earned to date and based on current salary levels.

C)	actuarial present value of all future pension benefits earned to date based on expected future salary increases.

The projected benefit obligation (PBO) is defined as the actuarial present value of all future pension benefits earned to date based on expected future salary increases.

Rank: 4

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

7^#

发表于 2011-3-9 15:36 | 只看该作者

The actuarial present value of all future pension benefits earned to date, based on expected future salary increases, is called the:

A)	projected benefit obligation (PBO).

B)	vested benefit obligation.

C)	accumulated benefit obligation.

The PBO is the actuarial present value (at an assumed discount rate) of all future pension benefits earned to date, based on expected future salary increases. It measures the value of the obligation, assuming the firm is a going concern and that the employees will continue to work for the firm until they retire.