Current generally accepted accounting principles require that the discount rate for calculating the present value of future

Question:

Current generally accepted accounting principles require that the discount rate for calculating the present value of future postretirement health care benefits be based on:

a. The current rate of return on the reporting entity's investment portfolio.

b. The current average rate of return on the investment portfolio of other companies operating in the reporting entity's industry.

c. The current rate of return on plan assets held in similar health care plans.

d. The current rate of return on high-quality fixed-income investments.

Chooses the correct answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing And Assurance Services

ISBN: 9780538869522

5th Edition

Authors: David Ricchiute

See More Books

Question Posted: May 04, 2024 02:02 AM

See More Questions

Use Newton's Law of Gravity and Newton's Second Law to find the acceleration of gravity on the surface of the Moon. The Mass of the Moon is M = 7.35-10 22 kg and it has a radius of r = 1.7375-10 6 m.
Requirements Calculate the net undiscounted and discount cash flows that you would use in the impairment tests. Explain why the discount rate used to calculate discounted cash flows is appropriate...
Holmes Corporation is a leading designer and manufacturer of material handling and processing equipment for heavy industry in the United States and abroad. Its sales have more than doubled, and its...
A trait determined by an X-linked dominant allele shows 100 percent penetrance and is expressed in 36 percent of the females in a population. Assuming that the population is in HardyWeinberg...
On the basis of experiments, it has been suggested that concrete, either plain or reinforced, can be a suitable material for dies in sheet-metal forming operations. Describe your thoughts regarding...
What are the six major factors that distinguish multinational financial management from financial management as practiced by a purely domestic firm?
Keep on tossing The figure below shows the results of two different sets of 5000 coin tosses. Explain what this graph says about chance behavior in the short run and the long run. Proportion of heads...
Presto Corp. had total variable costs of $180,000, total fixed costs of $110,000, and total revenues of $300,000. Compute the required sales in dollars to break even.
In March, Kelly Company had the following unit production costs: materials $11 and conversion costs $9. On March 1, it had no work in process. During March, Kelly transferred out 28,500 units. As of...
The transition obligation in accounting for postretirement health care benefits is the difference between: a. The accumulated postretirement obligation and the value of the assets funded to date. b....
Management has incentives to overstate the discounted present value of future health care obligations because the effect is to: a. Understate investment performance. b. Understate net income. c....
Evaluate the integral. de 1 + cos 0
Assume that two investments are combined in a portfolio. a. In words, what is the expected rate of return on the portfolio? b. What condition must be present for the portfolio to have lower risk than...
Several years ago, the Value Line Investment Survey reported the following market betas for the stocks of selected healthcare providers: At the time these betas were developed, reasonable estimates...
Suppose that the risk-free rate, RF, is 8 percent and the required rate of return on the market, R(R M ), is 14 percent. a. Write out the security market line (SML) equation, and explain each term....
Verify that under the mutual independent log-linear model (7.23), the variable $y$ is independent with the other two. log ijk = log +logi+k+log +j+ = X + X + x + X + X (7.23)
Ted's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2011, its first year of operations, Ted's Bike...
The number of accidents that occur on a busy stretch of highway is a random variable. a. What are the possible values of this random variable? b. Are the values countable? Explain. c. Is there a...
Making use of the tables of atomic masses, find the velocity with which the products of the reaction B10 (n, ) Li7 come apart; the reaction proceeds via interaction of very slow neutrons with...
Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 235 units @ $ 16.00 = $ 3,760 Jan. 10 Sales 185 units @ $ 25.00 Jan. 20 Purchase 180 units @ $ 15.00 = 2,700...
N.B: Please answer them ASAP , no explanation needed just the answers . Thanks in advance Ghandour Company manufactures three products of chocolate. One of the products has a net loss of $23,000 from...
Zo Sage opened a renovation business called Cranbrook Construction on August 3, 2020. During the first month of operations, the business completed the following transactions: (Click on the icon to...

Current generally accepted accounting principles require that the discount rate for calculating the present value of future

Question:

Step by Step Answer:

d The current rate of return on highquality fixedincome investments The discount rate ...View the full answer

Auditing And Assurance Services

Students also viewed these Business questions