Worldatwork Exam T7 Topic 3 Question 91 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 91
Topic #: 3

IAS 19 requires that all numbers involved in accounting for defined benefit plans be presented as a single amount in the statement of financial position. What is this amount called?

ANet defined benefit liability (asset)

BAsset ceiling

CFair value

DNet present value

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Suggested Answer: A

by Jaclyn at Jul 04, 2024, 06:19 AM

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Cherrie

4 months ago

Wow, this question is as clear as mud. I'm going to go with my gut and say Net defined benefit liability (asset) - can't go wrong with the official terminology, right?

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Leatha

3 months ago

I'm leaning towards Fair value, but I'm not 100% sure.

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Malcom

3 months ago

I agree with the first user, Net defined benefit liability (asset) sounds correct.

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Eric

4 months ago

I'm not so sure, I think it might be Net present value.

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Alica

4 months ago

I think you're right, it should be Net defined benefit liability (asset).

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Kattie

5 months ago

Asset ceiling? What is this, a game of limbo? I'm pretty sure that's not the right term we're looking for here.

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Linwood

3 months ago

Yeah, I'm pretty sure it's not related to limbo!

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Willie

3 months ago

I agree, it's definitely not B) Asset ceiling.

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Lashawn

3 months ago

I think the correct term is A) Net defined benefit liability (asset).

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Herschel

3 months ago

D) Net present value

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Joesph

3 months ago

C) Fair value

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Phuong

3 months ago

B) Asset ceiling

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Ivette

3 months ago

A) Net defined benefit liability (asset)

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Izetta

4 months ago

Yeah, I'm pretty sure it's D) Net present value.

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Gaynell

4 months ago

I agree, it's not B) Asset ceiling. That doesn't sound right.

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Nikita

4 months ago

I think the correct term is A) Net defined benefit liability (asset).

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Jenifer

4 months ago

D) Net present value

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Colette

4 months ago

C) Fair value

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Margarita

4 months ago

B) Asset ceiling

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Antonio

4 months ago

A) Net defined benefit liability (asset)

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Elmer

5 months ago

I think it might be Fair value, as that is commonly used in accounting.

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Tiffiny

5 months ago

Net present value? Come on, that's for future cash flows, not defined benefit plans. I think I know the answer to this one.

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Maddie

4 months ago

Net defined benefit liability (asset)? That sounds right to me.

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Lashawn

5 months ago

A) Net defined benefit liability (asset)

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Chaya

5 months ago

Yes, that makes sense. Both options seem plausible.

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Lawanda

5 months ago

Fair value? Nah, that's too basic. This is an IAS 19 question, we need to be more technical here.

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Arlette

4 months ago

D) Net present value

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Casie

5 months ago

A) Net defined benefit liability (asset)

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Casie

5 months ago

Net defined benefit liability (asset) - sounds like the right answer to me. Can't go wrong with the accounting lingo, am I right?

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Rasheeda

5 months ago

B) Asset ceiling - That's not the right answer, it refers to the maximum value of an asset that can be recognized on the balance sheet.

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Troy

5 months ago

A) Net defined benefit liability (asset) - Yes, that's correct. It represents the overall financial position of the defined benefit plan.

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Altha

6 months ago

I believe it could also be Net present value.

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Chaya

6 months ago

I think the amount is called Net defined benefit liability (asset).

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