What significant improvement in the financial reporting of pensions have pension

Question

What significant improvement in the financial reporting of pensions have pension accounting rules provided?
a. determination of the expense for the income statement
b. limited balance sheet recognition of pension liabilities
c. improved disclosure
d. determination of the expense for the income statement and limited balance sheet recognition of pension liabilities
e. determination of the expense for the income statement, limited balance sheet recognition of pension liabilities, and improved disclosure

Explanation / Answer

Not sure what the question is asking exactly, but I would say the answer is e) The pension expense is dependent on compensation growth, the discount rate as well as other employee factors. The balance is structured differently under GAAP and IFRS but that can be adjusted for. Also disclosure has improved so that companies can show what pension assets they hold and what their liabilities might look like.

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