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  11. The key difference between defined benefit and defined contributions

Question :   11. The key difference between defined benefit and defined contributions : 2102197

 

11. The key difference between defined benefit and defined contributions post-employment plans is that:

a. the employee bears the risk in a defined benefit plan, whereas the employer bears the risk in a defined contribution plan

b. the fund bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan

c. the employer bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan

d. the employer bears the risk in a defined benefit plan, whereas the fund bears the risk in a defined contribution plan

12. Benefits paid to members of a defined benefit post-employment fund are based on:

I the level of employer contributions made to the fund

II remuneration levels while employed

III number of years service

IV investment returns generated by the fund

a. I and II only

b. II and III only

c. III and IV only

d. I and IV only

13. An increase in the present value of a defined benefit obligation resulting from employee service in the current period is referred to as:

a. the current service cost

b. the past service cost

c. the interest cost

d. an actuarial gain or loss

14. AASB 119 requires an entity to record a liability for long service leave:

a. once the employee becomes presently entitled to the leave

b. as the employee provides service to the entity

c. when the leave is taken by the employee

d. in a consistent manner from year to year

15. AASB 119 adopts which method to determining long service leave obligations?

a. units of production method

b. the actuarial method

c. the bi-nominal method

d. projected unit credit method

 

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