Question

A government offering a defined benefit pension plan changes the plan terms with the result that pension benefit are increased. How would the resulting increase in the net pension liability be recognized in the financial statements in the year the plan is changed?

Answer 1

The increase in net pension liability would be deferred and amortized over the remaining service life of the employees

Step-by-step explanation:

The increase in net pension liability would be deferred and amortized over the remaining service life of the employees.