Service cost component of pension expense


Problem: In computing the service cost component of pension expense, the FASB concluded that:

The accumulated benefit obligation provides a more realistic measure of the pension obligation on a going concern basis.

A company should employ an actuarial funding method to report pension expense that best reflects the cost of benefits to employees.

The projected benefit obligation using future compensation levels provides a realistic measure of present pension obligation and expense.

All of these

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Accounting Basics: Service cost component of pension expense
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