Question

The IASB and the FASB are studying several issues related to accounting for pensions including all of the following except

a. eliminating smoothing provisions.
b. requiring companies to report actual asset returns and any actuarial gains and losses directly in the income statement.
c. requiring companies to report various components of pension expense, such as interest cost, separately in the income statement along with other interest expense.
d. All of the above issues are under study by the IASB and the FASB.

Answer 1

All the options (a, b, and c) listed in the question are, in fact, issues that the IASB and FASB have studied regarding pension accounting reforms, thus making (d) 'All of the above issues are under study by the IASB and the FASB' the correct answer.

Step-by-step explanation:

The subject of the question relates to the joint efforts of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in studying reforms related to pension accounting. The question asks which of the listed issues is not under study by these boards.

To clarify, all the options presented (a, b, and c) are indeed issues that these standard-setting entities have looked into as part of their ongoing efforts to improve financial reporting, as they concern the transparency and clarity of financial statements where pensions are relevant.

Therefore, the answer to the question would be (d) 'All of the above issues are under study by the IASB and the FASB.' Pensions can be complex to account for, and these standards aim to provide a more accurate reflection of a company's financial position.