Final answer:
A company with a defined benefit pension plan makes all of the following disclosures except the investment strategy of the pension fund.
Step-by-step explanation:
The company with a defined benefit pension plan makes all of the following disclosures except the investment strategy of the pension fund.
The defined benefit pension plan includes disclosures such as the calculation of the pension expense, showing each of the components separately; the discount rate used to calculate the present value of the future pension liabilities; estimates of contributions for the next 5 years; and the status of the plan. However, the investment strategy of the pension fund is not typically disclosed.
For example, the company may disclose that the pension expense is calculated based on the expected return on plan assets, the service cost, interest cost, and actuarial gains or losses. The discount rate is used to determine the present value of the future pension obligations. Estimates of contributions for the next 5 years provide insight into the company's financial commitment to the pension plan. The status of the plan includes information about the funded status, liabilities, and assets of the plan.