The terminology in the pensions section is confusing me. I think I understand the difference between periodic pension cost (income statement expenses) and total periodic pension cost (income statement + OCI), but what does “retirement benefits paid” mean (question #8 in EOC)? Is that the same as total periodic pension cost?
Unrelated to the above, I am confused by #14. / “if xx had used the same expected long-term rate of return on plan assets assumptions in 2009 as it used in 2007, its year end pension obligation would most likely have been?” / the answer is that long-term rate of return is not a component in calculating the pension obligation. But why not? I thought that under GAAP, expected return is used in calculating interest income?