When ac c ount ing f or a pension plan c onsiderat

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ac c ount ing f or a pension plan, c onsiderat ion must be given t o whet her we are ac c ount ing f or t he pension plan f rom an employer’s perspec t ive or ac c ount ing f or t he pension plan it self . In t his c ourse, we are c onc erned about t he employer’s point of view. Ac c ount ing f or pension plans f rom t he pension plan’s perspec t ive is a very spec ialized area t hat is beyond t he sc ope of t his c ourse. Ac c ount ing f or Pensions f rom a Company Perspec t ive https://blackboar d.tr u.ca/webct/ur w/lc5122001.tp0/cobaltM ainFr ame.dowebct 2/7 10/14/13 Blackboar d Lear ning System T he c ompany sponsors t he pension plan. T he c ompany inc urs c ost s and makes regular c ont ribut ions t o t he f und. Ac c ount ing f or t he c ompany involves: Alloc at ing pension c ost t o t he proper ac c ount ing period Measuring result ing pension obligat ions Disc losing t he st at us of t he plan in t he f inanc ial st at ement s Ac c ount ing f or Pensions f rom t he Pension Plan Perspec t ive A t rust ee rec eives t he c ont ribut ions f rom t he c ompany, invest s t he monies in various asset s on behalf of t he employees and ret irees, and pays benef it s t o ret ired employees. Ac c ount ing f or t he pension plan inc ludes rec ording rec eipt s f rom employer c ont ribut ions, inc ome f rom invest ment s of t he plan, amount s paid t o pensioners, and ot her inf ormat ion. T he pension plan prepares it s own set of f inanc ial st at ement s in ac c ordanc e wit h GAAP. Ac t ivit y 6- 1: Pensions and Ot her Employee F ut ure Benef it s Introduction T his ac t ivit y provides t he opport unit y t o bec ome f amiliar wit h t he princ iples and t erminology of pensions and employee f ut ure benef it s. Instructions P art A : Reading 1. Read Chapt er 19, “Pensions and Ot her Employee F ut ure Benef it s” and Appendix 19A— Example of a One- Person Plan in your t ext book, pages 1228–1276. As you read, c onsider t he f ollowing: What is t he dif f erenc e bet ween a def ined benef it plan and a def ined c ont ribut...
View Full Document

Ask a homework question - tutors are online