Problem:
One of your friends just came out of a lecture on accounting for defined-benefit pension plans. "I can't believe how complicated that is," she says. "And half of the information used is just a guess. I think we should go back to the cash basis of reporting for these plans. At least it was reliable."
Using your knowledge of how the five components of pension accounting are measured, explain the rationale behind the measurement of at least two of the pension cost components. Comment on the postings of at least two other peers who have used either a different argument or a different component of pension costs.