Accounting for Pensions Student’s Name Institution Accounting for Pensions Question 1 Mark-to-market accounting method for pension accounting is easier to understand as it offers a clear picture on how actuarial gains and losses should be recognized as opposed to their amortization annually. The method can provide a snapshot of the current performance of the pension plan. It enables the firms to recognize pension expense with immediate effect rather than capitalize or amortize the costs. Based on this procedure costs become more transparent (Allen & Carletti, 2008). If transparency is improved, there will be a trickledown effect which will make the operating performance of the pension...
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