Accounting problem!!! ?

Question

In the pension plan, why should the actual return on the plan asset

deduct the pension expense?

because I think the liability should still stay w/o any change.

Answer 1

Do you think pension plan runs by itself? it's actually being managed by someone, somebody called a fund manager & the staff (overhead). Depending on your company's agreement with the pension plan but looks like for you, those cost are chargeable back to each employee.

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