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The corridor approach is used to amortize

A. the over/underfunded status of a pension plan.
B. benefit payments in excess of employer contributions.
C. prior service cost obligations.
D. actual return

User Roadmaster
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1 Answer

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Answer:

Corridor amortization is a term used when the organization's unrealized net gain or net loss exceeds 10% of the opening balance of defined benefit obligation as prescribed under the IASB criterion. The difference amount between the two should be amortized in a pension worksheet by the organization.

User Liastre
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