Question

The fair value of pension plan assets is used to determine the corridor and to calculate the expected return on plan assets.

Expected Return

Corridor on Plan Assets

a. Yes Yes

b. Yes No

c. No Yes

d. No No

Answer 1

Answer:

a. Yes Yes

Explanation:

Pension plan assets is a term used for the monetary benefits an organization will give to its retirees in the future. Generally, in order to estimate the corridor and determine the approximate value of the expected return on the plan assets, we need to consider the fair value of pension plan assets. Thus, the statement is true for both expected return and corridor on plan assets.