handout for class 9

handout for class 9 - t b. With benefits that do not vest...

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Handout #8 for Bus321-Intermediate Accounting II Professor: Yasheng Chen Notes for BUS321 Class 9: Accounting for Pension Learning objectives: 1. Understand the nature and characteristics of pension plans 2. Prepare a pension worksheet 3. Prepare journal entries to record pension expenses and accrued pension liability / asset. 4. Indicate how pensions and other future benefits are disclosed. Key learning points: 1. Types of pension plans and major characteristics 2. Difference between “defined contribution plan” and “defined benefit plan” 3. Accounting for DCP 4. Pension PBO valuation for DBP 5. Non-capitalization approach for DBP 6. Funded status 7. Structure of pension worksheet 8. Components of pension expenses 9. Immediate Recognition Approach versus Deferral and Amortization Approach a. Past service costs b. Corridor approach to amortize net actuarial gain/loss 10. Accounting for other defined benefit plans a. With benefits that vest or accumulate
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Unformatted text preview: t b. With benefits that do not vest or accumulate 1 Handout #8 for Bus321-Intermediate Accounting II Professor: Yasheng Chen Problem 19-11 on page 1292 Beaton and Gunter Inc. Pension Work Sheet2011 General Journal Entries Memo Record Items Annual Pension E x p e n s e Cash Accrued Pension L i a b il it y Accrued Benefit Obli gati on Plan As set s Unreco-gnized Past Service C o st Unreco-gnized Net Gain o r L o s s A Balance, Jan. 1, 2011 (a) Service cost (b) Interest cost (c) Expected return (d) Amortization of PSC (e) Amort. of act. gain (f) Funding (g) Employee contr. (h) Benefits (i) Act. gain on assets (j) Liability loss Expense entry, 12/31/11 Funding entry Balance, Dec. 31, 2011 (e) Year ABO, 1/1 Plan Assets (Market, 1/1) 10% Corridor Unrecognized Net Loss, 1/1 Min.Amort. of Loss for 2011 2 Handout #8 for Bus321-Intermediate Accounting II Professor: Yasheng Chen 3...
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handout for class 9 - t b. With benefits that do not vest...

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