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GAAP requires that a company accrue the cost of OPRB's during the periods in which its employees earn the benefits. True or False?

1 Answer

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Final answer:

GAAP requires that a company accrue the cost of OPRB's during the periods in which its employees earn the benefits. True.

Step-by-step explanation:

The statement is true. GAAP (Generally Accepted Accounting Principles) requires that a company accrue the cost of OPRB (Other Postretirement Benefits) during the periods in which its employees earn the benefits.



In other words, the company must record an expense in its financial statements for the costs associated with providing benefits such as healthcare, life insurance, and pension to its employees while they are working.



This ensures that the financial statements accurately reflect the company's obligations and expenses related to employee benefits.

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User Nadeem Douba
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