Which of the following is a required financial statement for a Defined Benefit Pension Plan?

Answer options:

Statement of Changes in Net Assets Available for Benefits

Statement of Comprehensive Income

Statement of Cash Flows

Balance Sheet

How to approach this question

Pension plans report 'Net Assets Available for Benefits' and the 'Changes' therein. They do not produce a Cash Flow statement.

Full Answer

A.Statement of Changes in Net Assets Available for Benefits✓ Correct

ASC 960 requires defined benefit plans to present a Statement of Net Assets Available for Benefits and a Statement of Changes in Net Assets Available for Benefits.

Common mistakes

Assuming standard business statements (Income Statement, Cash Flows) apply.

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