Question

If a pension plan has not established an irrevocable trust to account for defined benefit pension plan contributions and distributions, a government participating in the plan would report its net pension liability in its proprietary fund and government-wide financial statements.
True / False.

Answer 1

Answer:

The statement is incorrect, the answer is False.

Answer 2

Answer:

False is the correct answer.

Explanation:

A pension plan is a retirement plan that needs an employer to make contributions to a pool of funds set aside for a worker's future benefit. In this case, it is false that if a pension plan has not established an irrevocable trust to account for defined benefit pension plan contributions and distributions, a government participating in the plan would report its net pension liability in its proprietary fund and government-wide financial statements.