Reporting of Pension Liability by XYZ Corporation

Medium Employee Compensation Post-employment Benefits

XYZ Corporation, a multinational manufacturer, offers a defined benefit pension plan to its employees. As of the end of the current fiscal year, the firm reported the following relevant figures related to its pension plan:

Projected benefit obligation (PBO): $2,500,000
Fair value of plan assets: $1,800,000
Unrecognized gain (loss): $100,000

In their financial statements, XYZ Corporation is evaluating how to report its post-employment benefits in accordance with IFRS. Specifically, they focus on the net pension asset or liability they will present on the balance sheet.

Given the information provided, which of the following statements is TRUE regarding XYZ Corporation's reporting of its post-employment benefits?

XYZ Corporation should report a net pension liability of $700,000.

XYZ Corporation should report a net pension asset of $200,000.

XYZ Corporation should not report any pension asset or liability.

Hint

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Correct10.0K

% Correct53%