Notes_on_computations

Notes_on_computations - FSA3607 Accounting Specifics For...

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Page | 1 FSA3607 – Accounting Specifics For Postretirement Benefits Slide 26 NOTES ON COMPUTATIONS 1. Pension per year, 962 $ 5 52 000 , 10 $ = × one week’s compensation at the time of retirement multiply by the number of years worked under the plan. 2. The PV of the pension @ December 31, 2025, date of retirement is: 753 , 6 $ 07 . 0 ) 07 . 0 1 ( 1 962 $ 10 = + - × - . Ten years life expectancy, discount rate 7%. 3. The PV of the pension @ December 31, 2005, date of the balance sheet (today) is: 745 , 1 $ ) 07 . 1 ( 753 , 6 $ 20 = × - 4. The projected salary and the date of retirement is: 911 , 21 $ ) 04 . 1 ( 000 , 10 $ 20 = × , if we suppose a 4% increase in salary per year. 5. The projected pension per year, one week compensation, 2005 formula: 107 , 2 $ 5 52 911 , 21 $ = × 6. The PV of the corresponding projected pension @ December 31, 2025, date of retirement is: 798 , 14 $ 07 . 0 ) 07
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This note was uploaded on 06/11/2011 for the course ACCT 3607 taught by Professor Mike during the Spring '11 term at Assumption College.

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