Question
In its 10-Q for the second quarter of 2017, United Parcel Service, Inc. (also known as UPS) disclosed the following information about its employee benefits
In its 10-Q for the second quarter of 2017, United Parcel Service, Inc. (also known as UPS) disclosed the following information about its employee benefits plan:
Plan Amendments and Curtailments
In the quarter ended June 30, 2017, we amended the UPS Retirement Plan to cease accruals of additional benefits for future service and compensation for non-union participants. We remeasured plan assets and pension benefit obligations for the affected pension plans, resulting in a net actuarial gain of $569 million. This [net actuarial gain] reflects a reduction of approximately 0.32 percent in the discount rate [on the pension obligation]. The actuarial gain reduced the actuarial loss recorded in "accumulated other comprehensive loss" in the equity section of the consolidated balance sheet. As actuarial losses are within the corridor, there is no impact to the statement of consolidated income for the quarter ended June 30, 2017.
Because UPS ceased accruals of additional pension benefits for future service as of June 30, 2017, after June 30, 2017 UPS did not record (in other words, recorded zero for) which of the following?
Amortization of prior service cost
Expected return on assets
Interest cost
Service cost
Step by Step Solution
3.48 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
ANSWER A mortization of prior service cost Amortization of prior service costs should begin immediat...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started