Question

To measure obligation under defined benefit plan, the discount rate should be
determined by reference to

(a)- Market yield on Government bonds at the beginning of the year

(b)- Market yield on Government bonds at the balance sheet date

(c)-Higher of (a) or (b) above

(d)- Lower of (a) or (b) above​

Answer 1

Answer:

b

Explanation:

i am teacher so now is a correct answer because there is a knowing the balance sheet

Answer 2

Answer:

To measure obligation under a defined benefit plan, the discount rate should be determined by reference to the Market yield on Government bonds at the balance sheet date.

Explanation:

An employer-sponsored retirement plan where benefits of the employee are computed is referred to as the defined-benefit plan. The company is responsible for managing the plan's investments and risk and will usually hire an outside investment manager to do this. To measure obligation under a defined benefit plan, the discount rate should be determined by reference to the Market yield on Government bonds at the balance sheet date. It is the present value of all expected future benefit payments attributed by the pension benefit formula to employee service rendered to date.

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