Analysts reporting on companies will pay close attention to the disclosures regarding pension benefits. Key points include all of the following except: Multiple Choice

A) to help analysts determine whether fund assets are large enough to satisfy currently anticipated pension benefit payouts, FASB ASC Topic 715 requires firms to provide a table that lists the dollar benefits expected to be paid in each of the ensuing five years and in the aggregate for the five years thereafter.

B)while companies with overfunded plans can suspend funding for long periods and use the cash for other operating purposes, underfunded plans may reflect past and continuing cash flow difficulties.

C) the common rule of thumb is that a 1% decrease in discount rate would increase PBO by 17.0% whereas a 1% increase would decrease it by 14.5%.

D) because of high assumed discount rates, most pension plans have remained underfunded with funding ratios ranging between 69% and 86% since 2008.

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Which of the following statements does not properly represent IFRS guidance on pension costs?

Multiple Choice

• IFRS uses the discount rate to compute the expected return on plan asset.

• In recognition that pension costs are related to employee service, all costs are included in operating activities.

• Under IFRS past service cost may be recognized immediately.

• Actuarial gains and losses on the PBO and the actual return (less the expected return on plan assets) are recognized in OCI without subsequent amortization to pension expense.