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(Solution document) A recent article noted that while "smoothing" is not necessarily an accounting virtue, pension accounting has long been recognized as an


A recent article noted that while "smoothing" is not necessarily an accounting virtue, pension accounting has long been recognized as an exception?an area of accounting in which at least some dampening of market swings is appropriate. This is because pension funds are managed so that their performance is insulated from the extremes of short-term market swings. A pension expense that reflects the volatility of market swings might, for that reason, convey information of little relevance. Are these statements true?

 







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