[calicpa]

For the 3rd component of pension expense, is component 3 ACTUAL or EXPECTED return on plan assets?

CPAexcel says its expected

WTB and gleim say its actual…..

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[Anonymous]

I do not have CPAexcel, but I think you talk about expected return on plan assets

Beginning Fair Value of Plan Assets x Expected Rate.

[Anonymous]

I do not have CPAexcel, but I think you talk about expected return on plan assets

Beginning Fair Value of Plan Assets x Expected Rate.

[NYCaccountant]

It's supposed to be expected return on plan assets. Wiley Adjustes the actual return, so that it equals expected. Technically your supposed to use expected, and the difference between expected and actual should go to OCI. It would then be amortized over the service period to Net Income.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

It's supposed to be expected return on plan assets. Wiley Adjustes the actual return, so that it equals expected. Technically your supposed to use expected, and the difference between expected and actual should go to OCI. It would then be amortized over the service period to Net Income.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Whopper Warrior]

@NYCaccountant, I agree; and it is only amortized if it falls out of the corridor (cumulative Gain or Loss is > 10% of pbo or fmv of assets)

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Whopper Warrior]

@NYCaccountant, I agree; and it is only amortized if it falls out of the corridor (cumulative Gain or Loss is > 10% of pbo or fmv of assets)

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[calicpa]

What to answer on the exam??

Which of the following components should be included in the calculation of net pension cost recognized for a period by an employer sponsoring a defined benefit pension plan?

Interest cost Actual return

on plan assets

A. Yes No

B. Yes Yes

C. No Yes

D. No No

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[calicpa]

What to answer on the exam??

Which of the following components should be included in the calculation of net pension cost recognized for a period by an employer sponsoring a defined benefit pension plan?

Interest cost Actual return

on plan assets

A. Yes No

B. Yes Yes

C. No Yes

D. No No

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[NYCaccountant]

Yes, no You are supposed to use expected return. You can use actual return if it's the same as expected return though.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

Yes, no You are supposed to use expected return. You can use actual return if it's the same as expected return though.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Author]

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