Question 20-10 - from plan assets and the change in the...

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Identify the five components that comprise pension expense. Briefly explain the nature of each  component. The five components of pension expense are : 1)service cost component-the  actuarial present value of benefits attributed by the pension benefit formula to  employee service during the period. 2) Interest cost component-the increase in the  projected benefit obligation as a result of the passage of time. 3) Actual return on  plan assets component-the reduction in pension cost for actual investment income 
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Unformatted text preview: from plan assets and the change in the market value of plan assets. 4) Amortization of prior service-cost the cost of retroactive benefits granted in a plan amendment (including initiation of a plan). 5) Gains and losses-a change in the value of either the projected benefit obligation or the plan assets resulting from experience different from that assumed or expected or from a change in an actuarial assumption....
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