o Defined benefit pension accounting Prior to APB Opinion 8 in 1966, some companies with defined benefit pension plans reported pension expense as the amount paid to retirees in the current year and did not recognize a liability for future pensions. Explain why that was theoretically unsound accounting in the following paragraphs: Explain why defined benefit pension costs should be recognized in the period in which the employee earns it, not when the pension is paid. You must relate this to the matching concept of accounting and use the phrase deferred compensation in your explanation. Explain why pension costs should be recognized when earned by an employee by using the biblical principles of a fair wage and Romans 4:4. Explain why failing to record a liability for pensions is misleading to investors.