Choose the correct statement concerning pensions (defined benefit)and other post-employment benefits.
A) Pension expense has six components; other post-employment benefits expense has only five components.
B) Only pensions require a reconciliation of funded status to be disclosed.
C) Other post-employment benefits payments are more difficult to predict than are pension payments.
D) The entire other post-employment benefits obligation must be recognized in the balance sheet whereas, in most cases, the pension obligation is not.

Question

Quizplus · Accepted Answer

Other post-employment benefits, such as healthcare, are more difficult to predict due to variables like healthcare cost trends and changes in life expectancy, compared to more predictable pension payments.

Choose the Correct Statement Concerning Pensions (Defined Benefit)and Other Post-Employment