Question

which of the following reflects the treatment of actuarial gains/losses under aspe? select answer from the options below actuarial gains/losses are amortized to defined benefit expense through the corridor approach. actuarial gains/losses are recognized at 100% as incurred. a policy choice can be made to either amortize actuarial gains/losses through the corridor approach, or to recognize 100% as incurred. none of the choices are correct.

Answer 1

Under ASPE, companies have a policy choice to either amortize actuarial gains/losses through the corridor approach or recognize them fully as they are incurred.

Step-by-step explanation:

The treatment of actuarial gains/losses under Accounting Standards for Private Enterprises (ASPE) provides a policy choice for companies. They can either amortize the actuarial gains/losses through the corridor approach, which involves deferring recognition of some of these gains/losses, or they can recognize them at 100% as incurred. This allows companies flexibility in managing their financial statements according to what best fits their situation.