When accounting for defined benefit pensions, the net pension liability for employees of governmental activities is:

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19-07-2022
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When accounting for defined benefit pensions, the net pension liability for employees of governmental activities is:

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Tutorconsortium323 Tutorconsortium323 · Answer 1 · 2022-07-27T03:44:53+02:00

When accounting for defined benefit pensions, the net pension liability for employees of governmental activities is: Reported in the government-wide statements.

Where is Net Pension Liability ?

The net pension liability is the amount by which the liability of the pension increases the total pension assets. This increases the troubles of the people who are leading a retired life. The lower the rate of interest, more are the liabilities on the retired person's life.

The government wide statement of net position is a statement showing the financial position of governmental entity and its discretely presented component units. It shows the government balance or left over after all financial obligations and other liabilities are met. Its difference between government assets plus resource outflows and liabilities indicating how much money the government has at that point.

The net pension liabilities is part of the liabilities indicated in the government wide statement of net position.

Therefore , we can conclude that the correct option is (A) Reported in the government-wide statements.

Your question is incomplete, but most probably your full question was:

When accounting for defined benefit pensions, the net pension liability for employees of governmental activities is:

A) Reported in the government-wide statements.

B) Reported in the governmental fund-basis statements.

C) Both A and B.

D) Neither A nor B.

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