Which statement about the actuarial accrued liability in the statement of plan net assets is true?

The correct statement asserts that the actuarial accrued liability should not be included in the statement of plan net assets. The primary focus of the statement of plan net assets is to display the current financial position of the pension plan, showcasing the assets and liabilities as they relate to the plan's funding status.

Actuarial accrued liability represents the present value of future benefits earned by employees up to a certain date, which is a crucial number for assessing overall plan funding needs over the long term. However, it is not recorded directly as a liability on the balance sheet because it reflects values based on actuarial assumptions that might not align with current market values or cash obligations. Instead, pension plans typically report assets at fair value and legal obligations that are due immediately or in the near term.

This distinction is important for stakeholders as it helps isolate the available resources of the plan from long-term actuarial estimates, thus maintaining clarity in understanding the financial status of the plan on a given date. Therefore, considering actuarial accrued liability in the context of immediate net assets would obscure the plan's current financial health.