Asked by taylor williams on May 01, 2024
Verified
What is a requirement set for employers under the Financial Accounting Standards Board standards?
A) Employers must fund benefits on a pay-as-you-go basis.
B) Benefits must not appear as future cost obligations.
C) Employers should encourage employees to participate in management functions.
D) Financial statements should be made in such a way that outsiders cannot understand them.
E) Employers must set aside the funds they expect to need for benefits to be paid after retirement.
Financial Accounting Standards Board
An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.
Pay-As-You-Go Basis
A financial approach where expenses or charges are paid for at the time of purchase or consumption, rather than on credit.
Fund Benefits
Refers to the advantages or financial aid provided by an investment fund to its investors.
- Become familiar with the legal frameworks and compliance mandates related to offering benefits such as retirement plans and health insurance.
Verified Answer
GB
Greeshma BaratamMay 07, 2024
Final Answer :
E
Explanation :
Under the Financial Accounting Standards Board standards, employers are required to set aside the funds they expect to need for benefits to be paid after retirement. This is to ensure that these future cost obligations are properly funded and accounted for in financial statements. Options A, B, C, and D are not requirements under these standards.
Learning Objectives
- Become familiar with the legal frameworks and compliance mandates related to offering benefits such as retirement plans and health insurance.