Question
Which pension cost component is reported in operating income after ASU 2017-07?
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Answer
Only service cost.
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Question
How does the accumulated benefit obligation differ from the projected benefit obligation?
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Answer
ABO uses current salaries and ignores future raises.
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Question
What does the projected benefit obligation measure?
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Answer
The present value of benefits earned to date using expected future salaries.
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Question
Why is pension accounting for a defined benefit plan more complex than for a defined contribution plan?
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Answer
It requires actuarial estimates of the obligation and expense components.
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