Final answer:
Both IFRS and US GAAP have separate standards for handling pensions and other postretirement obligations, which is true. These standards aim to provide transparency and ensure firms properly fund pension plans and inform employees about their benefits.
The correct option is A.
Step-by-step explanation:
The question asks whether both IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles) have separate standards for pensions and other postretirement obligations.
The answer is True. Both IFRS and US GAAP provide distinct guidelines for accounting pension plans and postretirement benefits.
Pension plans, which include social security and retirement plans, are crucial for employees' financial security after retirement. It's worth mentioning that there has been a trend towards the elimination of pension plans in both the private and public sectors.
To safeguard employees, regulations have been put in place that penalizes firms for underfunding their pension plans and provides employees with more information about their pension accounts.
This is a key aspect of ensuring transparency and fairness in the management of these long-term obligations that firms owe to their retired employees.
The correct option is A.