1．en analyzing the disclosures made with regards to pension plan accounting released by a company, which of the following measures most accurately reflects the true economic position of the plan? A) The fair value of plan assets. B) The projected benefit obligation (PBO). C) The net pension asset (liability) recorded on the balance sheet. D) The funded status of the plan. The correct answer was D) The funded status of a pension plan is simply the fair market value of the assets minus the liabilities. Note that the components of the equation are disclosed only in the footnotes. The pension asset or liability reported on the balance is not an accurate reflection of the true economic position of the plan. 2．untain View Inc.’s latest financial statements show the accumulated benefit obligation (ABO) of their pension plan to be $250 million, while the fair market value of the plan assets are $210 million. The company’s balance sheet reflects a net pension liability of $25 million. In light of this information, which of the following actions is Mountain View required to take in accordance with U.S. GAAP standards? The company is required to: A) record a $15 million “additional pension liability” on its balance sheet, along with a corresponding entry on either the asset or equity side. B) disclose a $15 million “additional pension liability” in the footnotes to its financial statements. C) record a $40 million “additional pension liability” on its balance sheet, along with a corresponding entry on either the asset or equity side. D) disclose a $65 million “additional pension liability” in the footnotes to its financial statements. The correct answer was A) If the ABO exceeds the fair market value of plan assets, GAAP requires that companies disclose the difference on the balance sheet as a liability. The total difference between the ABO and the fair market value of plan assets is $40 million ($250 million – 210 million). Since $25 million of net pension liability from prior periods is already reflected in the financial statements, Mountain View needs to book $15 million in additional pension liability. 3．rla Whitney, CFA, is an investment advisor for a small money management firm in New York. She is considering the purchase of shares in Best Corp., a German company. Whitney is aware that there are differences in the accounting treatment of pension benefits for U.S. companies under GAAP and those companies operating under the International Financial Reporting Standards (IFRS). Which of the following statements most accurately describes the most significant difference between the GAAP and the IFRS rules for the accounting for pension plans? A) GAAP requires that actuarial gains and losses be amortized over the employee’s service life, while IFRS requires that they be amortized over the employee’s life expectancy. B) GAAP recognizes the funded status as a liability on the balance sheet, while IFRS reflects the funded status adjusted for unrecognized items. C) GAAP does not require that a minimum liability be recognized when the accumulated benefit obligation (ABO) is larger than the fair value of plan assets, while IFRS does require recognition. D) GAAP requires that prior service costs for currently vested employees be expensed in the period incurred, while IFRS requires them to be deferred and amortized. The correct answer was B) The major difference between GAAP rules and IFRS rules is the treatment of the pension liability. GAAP requires the recognition of the funded status as a liability on the balance sheet, while IFRS treatment reflects the funded status adjusted for unrecognized items. | 
发表于 2008-4-16 18:34
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