USCPA精選習題68：Financial

【正確答案】b

【答案解析】

Choice "b" is correct. Under U.S. GAAP, the prior service cost is booked to other comprehensive income and then amortized to the income statement (net periodic pension cost) by assigning an equal amount to each future period of service of each employee who is active at the date of the amendment. In this problem, prior service cost will be assigned equally to each service year provided by the company's employees as follows:

$600,000 × (350/2000) = $105,000

Note that under IFRS, the prior service cost would be reported on the income statement, not in other comprehensive income, and therefore would not be amortized.

Choice "c" is incorrect. Unrecognized prior service cost must be amortized by assigning an equal amount to each future period of service of each employee who is active at the date of the amendment.

Choice "d" is incorrect. The current period amortization of Parker's prior service cost is not equal to the expected future service hours. Unrecognized prior service cost must be amortized by assigning an equal amount to each future period of service of each employee who is active at the date of the amendment, as described above.

Choice "a" is incorrect. The company would not recognized the entire prior service cost in the current period, but would instead amortize the prior service cost by assigning an equal amount to each future period of service of each employee who is active at the date of the amendment.