Question

Which of the following disclosures are required by GAAP for OPEBs?

1) the assumed healthcare cost trend rates
2) the amounts of securities included in the plan assets
3) the types of securities included in the plan assets
4) All of these choices

Answer 1

GAAP requires that all of the listed items are disclosed for OPEBs: the assumed healthcare cost trend rates, the amounts of securities included in the plan assets, and the types of securities included in the plan assets. Therefore, all these choices are required disclosures.

Step-by-step explanation:

The disclosures required by GAAP for Other Post-Employment Benefits (OPEBs) are comprehensive. GAAP requires entities to disclose various details that help users of financial statements understand the size, timing, and uncertainty of future cash flows related to OPEBs. Among the required disclosures are:

1. The assumed healthcare cost trend rates which is an assumption about the rate at which healthcare costs will rise in the future and affects the estimated cost of providing OPEB benefits.
2. The amounts of securities included in the plan assets, which is part of the disclosure about the value of plan assets set aside to pay for these benefits.
3. The types of securities included in the plan assets, which provides information on the composition and risk profile of the plan assets.

Therefore, the correct answer to which disclosures are required by GAAP for OPEBs is 4) All of these choices.