Worldatwork Exam T7 Topic 2 Question 93 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 93
Topic #: 2

[All T7 Questions]

IAS 19 requires that all numbers involved in accounting for defined benefit plans be presented as a single amount in the statement of financial position. What is this amount called?

ANet defined benefit liability (asset)

BAsset ceiling

CFair value

DNet present value

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Suggested Answer: A

by Elvis at Jul 12, 2024, 07:23 AM

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Avery

10 months ago

I'm just hoping the answer isn't 'Retirement Happiness Index' or something equally made up. These accountants love to throw us curveballs!

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Buddy

10 months ago

The Asset ceiling? That's a new one to me. I better brush up on my IAS 19 knowledge before the exam.

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Veronika

10 months ago

Net present value? Really? I mean, I know that's important for calculating the plan's obligations, but it's not the final number that goes on the financial statements.

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Sean

9 months ago

D) Net present value

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Marylin

9 months ago

Net present value is used for calculations, but the final number is Net defined benefit liability (asset).

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Leota

9 months ago

C) Fair value

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Donte

9 months ago

B) Asset ceiling

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Dana

9 months ago

A) Net defined benefit liability (asset)

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Arleen

10 months ago

Hmm, I thought it was the Fair value that we had to present as a single amount. But I could be wrong, these accounting standards can get a bit tricky.

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Tasia

9 months ago

I think you're right, it is the Fair value that needs to be presented as a single amount.

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Eleni

9 months ago

I remember learning that it's the Asset ceiling.

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Virgina

9 months ago

I'm not sure, but I believe it's the Net present value.

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Aja

9 months ago

I think it's actually the Net defined benefit liability (asset).

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Nina

10 months ago

I remember studying that it's important to present all numbers as a single amount for clarity.

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Tyra

11 months ago

I'm not sure, but I think it might be Fair value.

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Jenelle

11 months ago

I'm pretty sure it's called the Net defined benefit liability (asset). That's the one that shows the overall position of the defined benefit plan on the balance sheet, right?

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Jillian

10 months ago

That's right. It's important to have a clear understanding of the net defined benefit liability (asset) when analyzing financial statements.

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Josephine

10 months ago

Yes, you're correct. It's the Net defined benefit liability (asset) that represents the overall position of the defined benefit plan on the balance sheet.

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Cammy

11 months ago

I believe it could also be Net present value.

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Nina

11 months ago

I think the amount is called Net defined benefit liability (asset).

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