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Unformatted text preview: a defined monthly retirement benefit provided under Plan 2 was eliminated.
The net effect of U.S.$ 1,395 resulting from the transfer of the benefit obligation and related
assets from Plan 2 to Plan ARUS was accounted for as a settlement gain in accordance with
SFAS 88 - “Employers’ Accounting for Settlements and Curtailments of Defined Benefit
Pension Plans and for Termination Benefits”, and credited to income for the year ended
December 31, 1998.
The Company and eligible employees make monthly contributions under the plan to a private,
government-approved pension fund, whose sponsors are Aracruz Celulose S.A. and its
subsidiary companies and whose board of administrators is composed principally of officers of
Aracruz Celulose S.A. Contributions by employees to the new plan are optional. The fund
owns and administers (or places with a trustee) its investments and other assets, which
comprise, principally, bank certificates of deposit, investments funds, marketable equity
securities and real estate.
Contributions made by the Compa...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08