Which statement is incorrect concerning the recognition and measurement of defined benefit plan?*1 pointActuarial assumptions are required to measure the obligation and expense and there is possibility of actuarial gains and losses.The obligation is measured on a discounted basis.The expense recognized for defined benefit plan is not necessarily equal to the amount of contribution due the period.None of the foregoing

Question 12Under defined benefit plan:Answer :The employees’ benefits are unknown.    Actuarial valuation is unnecessary in accounting for the plan.  The plan asset and retirement benefit obligation belong to the employer.    The employer is not legally bound by the ultimate amount to be payable to the retiring employees.

The report of defined benefit plan shall contain: I. A statement showing net assets available for benefits, the present value of promised benefit and the resulting excess or deficit. II. A statement of net assets available for benefits including a note disclosing the present value of proised benefits  *1 pointI onlyII onlyboth I & IIeither I & II

Which of the following statements is/are correct about employee benefits?*1 pointEmployee benefits are recognized as expense when employees have rendered services, except to the extent that the employee benefits form part of the cost of another asset.Any unpaid short-term benefits at the end of the reporting period shall be recognized as accrued expenseAny unpaid short-term benefits paid in advance shall be recognized as an asset to the extent, that it will lead to a reduction in future payments or a cash refundAll of these are correct

Remeasurements of defined benefit plan include which of the following?*1 pointThe difference between actual return and interest income on plan assetsActuarial gain or loss on defined benefit obligationChange in the effect of asset ceiling less the interest expense on the beginning of asset ceiling.All of these are included in the remeasurement of defined benefit plan

Which of the following is true of defined contribution plan?Question 4Answera.It provides an explicit benefit which is easily communicated.b.It is more favourable to long-service employees.c.It does not require managing of surplus or deficit in pension fund.d.It makes the employer accountable for the risks associated with changes in inflation and interest rates.e.It does not make employer costs known.