Question
Dream Dallas Corporation, a U.S.based real estate company, offers pension plans along with health care plans, and medical insurance post retirement of their employees. As
Dream Dallas Corporation, a U.S.based real estate company, offers pension plans along with health care plans, and medical insurance post retirement of their employees. As per the pension plan, the company is required to contribute an agreedupon amount of funds into the plan. However, the company makes no commitment regarding the future value of plan assets. How will the company record its pension plan in its financial statements?
Group of answer choices
a. On the income statement, the change in net pension liability or asset is recognized in profit and loss.
b. On the cash flow statement, the associated cash outflow is treated as an investing cash flow.
c. On the balance sheet, the company records a decrease in cash or an associated liability.
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