which of the following are correct regarding a transition obligation resulting from 604585
Which of the following are correct regarding a transition obligation resulting from the adoption of a defined benefit postretirement plan?
- I. A transition obligation may be recognized immediately.
- II. The transition obligation represents the difference between the accumulated postretirement benefit obligation and the fair value of plan assets at the beginning of the year the plan is adopted.
- III. A transition obligation may be amortized on a straight-line basis over a maximum period of twenty years.
- a. I and II.
- b. II only.
- c. I, II, and III.
- d. II and III.