What situation could lead to a bigger difference in the expected return on plan assets vs....

What situation could lead to a bigger difference in the expected return on plan assets vs. the actual return on plan assets - in any given year?

a. Young workforce, employees far from retirement

b. Assets invested in a blind trust

c. IFRS-reporting company

Solutions

Expert Solution

Answer: Option (b)

Low actual return on assets will largely depend upon poor selection of assets for investment purposes. Young workforce and IFRS will not have negative impact on actual return on assets. Hence, option (b) is correct.

jeff jeffy answered 2 years ago

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