If the fair value of pension plan assets exceeds the present value of the pension obligation,a company reports
A)a net pension liability on the balance sheet.
B)a net pension asset on the balance sheet.
C)nothing on the balance sheet.
D)a long footnote only.
E)both B and D

Question

Quizplus · Accepted Answer

When the fair value of pension plan assets exceeds the present value of the pension obligation, a company reports a net pension asset on the balance sheet. Additionally, details about the pension plan, including its status and the accounting policies applied, are disclosed in the footnotes to the financial statements.

If the Fair Value of Pension Plan Assets Exceeds the Present