Financial Accounting – Theory and Analysis (Text & Cases) 10th edition
Authors – Richard G. Schroeder
Myrtle W. Clark
Jack M. Cathey

Case 14-2:
SFAS No.87, “Employers Accounting for Pensions, “requires an understanding of certain terms.

1. Discuss the following components of annual pension cost:
a. service cost
b. interest cost
c. actual return on plan assets
d. amortization of unrecognized
e. amortization of the transition amount

2. Discuss the composition and treatment of the minimum liability provision.