Service cost related to a postretirement obligation


Which of the following statements about the recognition of a prior service cost related to a postretirement obligation is correct?

A. The prior service amount is recognized in the income statement in the current period.

B. The prior service cost is recognized in the income statement net of tax.

C. Restatement of previously issued annual financial statements is required.

D. The prior service cost amount affects comprehensive income in the current period.

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Accounting Basics: Service cost related to a postretirement obligation
Reference No:- TGS056040

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