Final answer:
The FASB does not require only the years-of-service method for amortization of prior service costs; other methods such as the straight-line method are also permissible (b).
Step-by-step explanation:
The statement that the FASB requires only the years-of-service method for amortization of prior service cost is false. The Financial Accounting Standards Board (FASB) allows for different methods of amortization of prior service cost in pension accounting. Among the allowable methods is the straight-line method over the average remaining service period of the employees. While the years-of-service method may be used, the FASB does not mandate that it is the only permissible method.
The statement 'The FASB requires only the years-of-service method for amortization of prior service cost' is true. The FASB, or Financial Accounting Standards Board, does indeed require the years-of-service method for amortization of prior service cost. This method allocates the cost of providing employee benefits over the estimated years of service for each employee.