The amount recognized on the balance sheet decreased from 31 December 20X0
to 31 December 20X1 because:
A. The sum of service cost and interest cost exceeded benefits paid.
B. the discount rate used in estimating the pension obligation exceeded the
actual rate of return of plan assets for the year.
C. the sum of the actual return on plan assets and employer contributions
exceeded the sum of service and interest cost on the benefit obligation.
Do you have a question?
- what does the writer mean by the decrease in the balance sheet?
- What will the effect on the B/S if the actual return exceeds the discount rate?
- also could you please explain three options in the context of the question?
The amount recognized on the balance sheet decreased from 31 December 20X0
to 31 December 20X1 because: