Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

A. Fair value

B. Time value of money

C. Net present value

D. The corporate vision

Employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting people in which the employee rendered the related service are considered what kind of benefits?

A. Short-term benefits

B. Post-employment benefits

C. Termination benefits

D. Long-term benefits

Why is accounting for defined benefits plans one of the most complex issues in International Financial Reporting Standards?

A. Because it involves incorporating actuarial assumptions into measurement of the obligation and the expenses

B. Because defined benefits plan obligations are not measured on a discounted basis

C. Because defined benefits plans must be settled within ten years after the employee renders the related service

D. Because the employer is not allowed to incorporate actuarial assumptions into measurement of the obligation and the expenses

Why is accounting for short-term employee benefits generally a straightforward process?

A. Because no actuarial assumptions are required to measure the obligation or cost and there is no possibility of any actuarial gain or loss

B. Because short-term employee benefit obligations are measured on a discounted basis

C. Because short-term employee benefits are not provided in exchange for the service of the employee

D. Because the employer is required to incorporate actuarial assumptions into measurement of the obligation and the expenses

What is the difference between the present value of defined benefit obligation and fair value of plan assets at the end of the reporting period called?

A. The financial position

B. The deficit or surplus

C. The discount

D. The present fair value