Understanding Accounting for Postretirement Benefits

School: University of North Carolina, Charlotte - Course: ACCT 4230 - Subject: Accounting

Accounting for Postretirement Benefits Learning Objectives 1. Understand the characteristics of pension plans. 2. Explain GAAP for pension plans, including computing pension expense and recognizing pension liabilities and assets. 3. Account for defined benefit pension plans. 4. Understand several important additional issues related to accounting for pension plans.
 
Pension Plans A contract between a company and its employees under which the company agrees to pay benefits to the employees after they retire In most plans, the employer and the employee contribute to the fund. The plan is generally managed by an independent entity. Manager of pension fund invests the fund's assets to earn interest, dividends, and capital appreciation so that funds are accumulated to pay retirees
 
Defined Contribution Pension Plans Defined Contribution Plan, ex. 401-K plans: Plan contributions by the company are defined. Record company contributions to the pension plan as follows: Company provides no guarantee about future retirement payments and the amount to be paid upon retirement is not known until retirement. Employers do not recognize pension fund assets on the balance sheet because these are not assets of the company

Expert's Answer

Your future, our responsibilty submit your task on time.

Order Now

Need Urgent Academic Assistance?

Price Starts from $10 Per Page

*
*
*
*

TOP
Order Notification

[variable_1] from [variable_2] has just ordered [variable_3] Assignment [amount] minutes ago.