U.S.GAAP and IFRS require firms to recognize as an expense the cost of retirement benefits when the employees receive payments or other benefits during retirement not while employees work.

Question

Quizplus · Accepted Answer

U.S.GAAP and IFRS require firms to recognize the cost of retirement benefits during the period employees work, not just when they receive payments or benefits during retirement. This is known as the accrual basis of accounting for retirement benefits.

USGAAP and IFRS Require Firms to Recognize as an Expense