JNJ case - Christopher Burnett Intermediate Financial Accounting II Johnson Johnson Case Study Concepts d The two return on plan assets accounts

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Christopher Burnett Intermediate Financial Accounting II March 10, 2010 Concepts d. The two “return on plan assets” accounts differ in that the return recorded under the pension expense is actually the expected return on plan assets and the return recorded under pension plan assets is the actual return on plan assets. This difference is rationalized by the realization that companies will pattern their pension expense upon their expectations of what returns they will have on their plan assets. e. The primary difference between the company’s other benefit plans and its retirement plans is that while retirement plans are largely based on the number of years of service for a company, other benefit plans are often unrelated to service such as is the case with post-retirement health care benefits. Process f. i. Johnson & Johnson reported the following amount as pension expense on its 2007 income statement: $646 ii. Service Cost: Pension expense 597 PBO 595 Interest Cost:
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This note was uploaded on 03/18/2010 for the course BA 111111 taught by Professor Prof.johnson during the Spring '10 term at Aarhus Universitet.

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JNJ case - Christopher Burnett Intermediate Financial Accounting II Johnson Johnson Case Study Concepts d The two return on plan assets accounts

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