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Which of the following is a significant item not recognized in the accounts and in the financial statements?

a. accumulated postretirement benefit obligation
b. postretirement benefit plan assets
c. expected postretirement benefit obligation
d. all of these

1 Answer

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Final answer:

The item not recognized in financial statements is the expected postretirement benefit obligation because it is an estimate rather than a present obligation or recognized resource.

Step-by-step explanation:

The significant item not recognized in the accounts and in the financial statements is c. expected postretirement benefit obligation. Unlike accumulated postretirement benefit obligations and postretirement benefit plan assets, which are accounted for on the balance sheet, the expected postretirement benefit obligation is an estimate and does not represent a present obligation or an economic resource recognized in the financial statements.

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