Inter Acct Chapter_17_day_three_solutions

Inter Acct Chapter_17_day_three_solutions - Chapter 17 Day...

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Chapter 17 Day three: Question 17-21 The expected postretirement benefit obligation (EPBO) is the actuary's estimate of the total postretirement benefits (at their discounted present value) expected to be received by plan participants. When a plan is pay-related, future compensation levels are implicitly assumed. The accumulated postretirement benefit obligation (APBO) measures the obligation existing at a particular date, rather than the total amount expected to be earned by plan participants. The APBO is conceptually similar to a pension plan’s projected benefit obligation . The EPBO has no counterpart in pension accounting. Question 17-22 The cost of benefits is “attributed” to the years during which those benefits are assumed to be earned by employees. The attribution period spans each year of service from the employee’s date of hire to the employee’s “full eligibility date,” which is the date the employee has performed all the service necessary to have earned all the retiree benefits estimated to be
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This note was uploaded on 04/05/2010 for the course ACCY 260 taught by Professor Yu during the Spring '10 term at Ferrum.

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Inter Acct Chapter_17_day_three_solutions - Chapter 17 Day...

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