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NEW QUESTION: 1
Andrew Carson is an equity analyst employed at Lee, Vincent, and Associates, an investment research firm. In a conversation with his supervisor, Daniel Lau, Carson makes the following two statements about defined contribution plans.
Statement I: Employers often face onerous disclosure requirements.
Statement 2: Employers often bear all the investment risk.
Carson is responsible for following Samilski Enterprises (Samilski), a publicly traded firm that produces motorcycles and other mechanical parts. It operates exclusively in the United States. At the end of its 2009 fiscal year, Samilski's employee pension plan had a projected benefit obligation (PBO) of $320 million.
Also, unrecognized prior service costs were $35 million, the fair value of plan assets was $316 million, and the unrecognized actuarial gain was $21 million.
Carson believes the rate of compensation increase will be 5% as opposed to 4% in the previous year, and the discount rate will be 7% as opposed to 8% in the previous year.
This past year, Samilski began using special purpose entities (SPEs) for various reasons. In preparation for analyzing the SPE disclosures in the footnotes to the financial statements, Carson prepares a memo on SPEs. In the memo, he correctly concludes that the company will be required under new accounting rules to classify them as variable interest entities (VIE) and consolidate the entities on the balance sheet rather than report them using the equity method as in the past.
Under current U.S. GAAP pension accounting standards, the amount of the pension asset or liability that Samilski should report on its 2009 fiscal year end balance sheet is closes/ to a:
A. $14 million liabiliy
B. $10 million liabilily
C. $4 million liability
Answer: C
Explanation:
Explanation/Reference:
Explanation:
An higher rate of compensation increase will increase the PBO. It will also increase the overall pension expense by increasing both the service and interest costs. (Study Session 6, LOS 22.b,c)
NEW QUESTION: 2
A volume with a single LUN shows 30% deduplication savings. However, the output of df on the cluster does not show
the 30% savings back to the volume or aggregate.
What is causing this behavior?
A. Volume space guarantee is set to none.
B. LUN space reserve is disabled.
C. LUN space reserve is enabled.
D. Volume space guarantee is set to volume.
Answer: A
NEW QUESTION: 3
Vision care is typically separated into two categories: routine eye care and clinical eye care. The standard benefit plans offered by most health plans include coverage for
1.Routine eye care
2.Clinical eye care
A. 2 only
B. 1 only
C. Neither 1 nor 2
D. Both 1 and 2
Answer: A
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