Testbank Multiple Choice Question 30 The projected benefit obligation is the measure of pension obligation that is not sanctioned under generally accepted accounting principles for reporting the service cost component of pension expense:
A. requires the longest possible period for funding to maximize the tax deduction.
B. is required to be used for reporting the service cost component of pension expense.
C. requires pension expense to be determined solely on the basis of the plan formula applied to years of service to date and based on existing salary levels.
D. is not sanctioned under generally accepted accounting principles for reporting the service cost component of pension expense.