Question
If the fair value of plan assets exceeds PBO, what does the sponsor report?
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Answer
A net pension asset.
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Question
Why is service cost reported in profit and loss for a defined benefit plan?
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Answer
It reflects benefits earned by employees in the current period.
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Question
Where are service cost and net interest from periodic pension cost typically recognized?
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Answer
In profit and loss.
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Question
In a defined contribution pension plan, who bears the investment risk?
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Answer
The employee bears the investment risk.
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