Question

33. An employer reports a pension loss in Other comprehensive income when: A. a change in an assumption causes the projected benefit obligation to be less than expected. B. the return on plan assets is lower than expected. C. retiree benefits paid out are more than expected. D. the accumulated benefit obligation is less than expected.

Answer 1

Answer:

C. retiree benefits paid out are more than expected

Explanation:

Given that: in the process of paying salary, there is also payment of pension to retirees, which can sometimes be carried out and done in an automatical manner such that the level of making mistake is highly minimal.

However, in a situation where by it is observed that payments being made to retirees claims are more than expected after payments have been carried out then it can be concluded that the company has experienced a pension loss.