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NEW QUESTION: 1
Stanley Bostwick, CFA, is a business services industry analyst with Mortonworld Financial. Currently, his attention is focused on the 2008 financial statements of Global Oilfield Supply, particularly the footnote disclosures related to the company's employee benefit plans. Bostwick would like to adjust the financial statements to reflect the actual economic status of the pension plans and analyze the effect on the reported results of changes in assumptions the company used to estimate the projected benefit obligation (PBO) and net pension cost. But first, Bostwick must familiarize himself with the differences in the accounting for defined contribution and defined benefit pension plans.
Global Oilfield's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Excerpts from the company's annual report are shown in the following exhibits.


Assume for this question only that economic pension expense for the year ended 2008 was €4,250.
Ignoring income taxes, which of the following statements best describes the adjustment necessary for analyzing Global Oilfield's cash flow statement?
A. Increase operating cash flow €5,000 and decrease financing cash flow €5,000.
B. Increase operating cash flow €750 and decrease financing cash flow €750.
C. Decrease operating cash flow €2,084 and increase investing cash flow €2,084.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Economic pension expense represents the true cost of the pension. If the firm's contributions exceed its economic pension expense, the difference can be viewed as a reduction in the overall pension obligation similar to an excess principal payment on a loan. Pension contributions arc reported as operating activities in the cash flow statement while principal payments are reported as financing activities. Thus, the adjustment involves increasing operating cash flow by €750 (€5.000 employer contributions - €4,250 economic pension expense) and decreasing financing cash flow by the same amount. (Study Session 6, LOS 22.e)

NEW QUESTION: 2

A. Option D
B. Option A
C. Option B
D. Option C
Answer: B

NEW QUESTION: 3
If discovery does not get past classification phase, what can be the issue?
Response:
A. Authentication
B. Code Error
C. Firewall Ports not open
Answer: A

NEW QUESTION: 4
What is an HPSA Core?
A. An SA Core is the minimum necessary set of components you install on the host which then accesses the primary database and other services through an SA Satellite connection.
B. An SA Core is a standalone component that stores the inventory of all servers under SA management.
C. An SA Core is a Windows application that you install after SA is installed. It provides an interface to SA functions.
D. An SA Core is a set of Core Components that work together to provision, configure, patch, monitor, audit and maintain servers from a centralized SA Client interface
Answer: B
Explanation:
Reference:
http://h20195.www2.hp.com/v2/GetPDF.aspx/4AA1-5249ENW.pdf