Question

Which of the following should be disclosed by a company providing health care benefits to its retirees? I. The assumed health care cost trend rate used to measure the expected cost of benefits covered by the plan. II. The accumulated postretirement benefit obligation. Group of answer choices

Answer 1

Answer: Both I and II

I. The assumed health care cost trend rate used to measure the expected cost of benefits covered by the plan. II. The accumulated post retirement benefit obligation.

Explanation:

Company must disclose the expected cost of benefits covered by their health care plan and also the accumulated post retirement benefit plan obligation.