Session 6: Financial Reporting and Analysis: Intercorporate Investments, Post-Employment and Share-Based Compensation, and Multinational Operations
Reading 24: Employee Compensation: Post-Employment and Share-Based
LOS h: Calculate the underlying economic pension expense (income) and other post-employment expense (income) based on disclosures.
Financial analysts can use select data from a company’s financial statements to derive an economic pension expense in order to better reflect the company’s true economic pension cost. Which of the following formulas will most accurately calculate a company’s economic pension expense?
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A) |
Beginning fair value of plan assets + service cost + interest cost – ending fair value of plan assets. | |
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B) |
Service cost + interest cost + plan amendments – actual return on plan assets. | |
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C) |
Service cost + interest cost – actual return on plan assets – benefits paid. | |
An economic pension expense is calculated without reflecting the amortization of unrecognized items and other smoothing mechanisms included in reported pension expense, and in addition uses the plan’s actual return on assets, rather than the plan’s expected return. | 
发表于 2011-3-9 15:43
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