When a pension plan is not trusteed, a company must report its pension plan assets and accrued pension liability on the balance sheet.

Question

Quizplus · Accepted Answer

When a pension plan is not trusteed, the company does not hold the pension plan assets directly, so these assets and the corresponding pension liability are not reported on the company's balance sheet. Instead, the financial effects of the pension plan are recognized in the company's financial statements through pension expense and disclosed in the notes.

When a Pension Plan Is Not Trusteed, a Company Must