A government offering a defined benefit pension plan changes the plan terms with the result that pension benefit are increased. How would the resulting increase in the net pension liability be recognized in the financial statements in the year the plan is changed?

Question

Alivia Watson

Social Studies

31 March, 05:49

A government offering a defined benefit pension plan changes the plan terms with the result that pension benefit are increased. How would the resulting increase in the net pension liability be recognized in the financial statements in the year the plan is changed?

+1

Answers (1)

Know the Answer?

Mia Booker · Answer 1

The increase in net pension liability would be deferred and amortized over the remaining service life of the employees

Explanation:

The increase in net pension liability would be deferred and amortized over the remaining service life of the employees.