Preview

Assignment 3 Accounting for Pensions and other Post Retirement Benefits

Good Essays
Open Document
Open Document
1551 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Assignment 3 Accounting for Pensions and other Post Retirement Benefits
Assignment 3: Accounting for Pensions and other Post-Retirement Benefits

ACC 563 – Advanced Accounting Theory

Abstract
This paper will be based research, compare and contrast the early historical accounting for Postretirement Health Care and Life Insurance Benefits with the guidance / rules in place today with the Financial Accounting Standards Board (FASB) recently issued Statement of Financial Accounting Standards No. 158 "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans; changes to the guidance and rules that would improve the financial accounting and reporting of the benefits. Predict the significant manner in which the future of accounting for these benefits could change, based on potential changes in the business and political climate; scenario in Postretirement Health Care and Life Insurance Benefits change that predict the potential impact of these changes on financial accounting and reporting practices.

Postretirement Health Care and Life Insurance Benefits
Early historical accounting for Postretirement Health care and Life Insurance Benefits, employers offering pension plans must disclosure the plans and their general features in a document. For defined Postretirement Health Care and Life Insurance Benefits plans, the employer must disclosure; if any, in the current year and pension expense equals Postretirement Health Care and Life Insurance Benefits. For as defined benefit plans, extensive disclosures of assumptions, components of pension expense, activity in the pension asset and pension obligation accounts and net funding status must be disclosed. In addition, the net pension asset/liability must be booked as an asset/liability and the change in pension assets and pension liabilities that are not booked into income must be booked into other comprehensive income. For pensions, the retirement benefits are fixed in the amount by the terms of a contract and only the term



References: Back Door Reversions: Limiting the Use of Pension Assets for Severance and Encouraging Plan Contributions Will Strengthen Defined Benefit Retirement Security; Retrieved December 7, 2014; http://www.nrln.org/flyin%20whtpprs/Whitepaper%20Back%20Door%20Reversions%20JAN.2013.pdf Controversies in Accounting for Post-Retirement Benefits; Retrieved December 7, 2014 http://www.cluteinstitute.com/ojs/index.php/JBER/article/viewFile/2466/2512

You May Also Find These Documents Helpful

  • Satisfactory Essays

    What does the balance sheet tell you about the company? Why is the balance sheet important? What business decisions could be made using the balance sheet?…

    • 491 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    As noted in Wikipedia Oracle is headquartered in Redwood, California. It was founded in 1977 and is the world's third largest soft wear developer in sales. According to Yahoo Finance Oracle is a multi-faceted operation. Oracle provides a vast amount of services for the internet and computer. It provides cloud applications, IT consulting services, licenses middleware software which includes database and database management. It has 115,000 full time employees and is run by co-founder, CEO Larry Ellison who has been the only CEO of the company since it's inception. Also noted in Wikipedia he is the top paid CEO in the world. In 2013 Oracle currently has an operating cash flow of 13.72B with revenues of 37.15B which can be found in Yahoo Finance.…

    • 1504 Words
    • 7 Pages
    Best Essays
  • Satisfactory Essays

    Acc 541 Reporting Paper

    • 395 Words
    • 2 Pages

    There are two frequently used pension plans which are defined benefit and contribution plans. Defined contribution plan consist of the employer’s promise to contribute a certain amount into the plan every pay period (Schroeder, Clark, & Cathey, 2005). For example, the company will contribute say 3% of each employee’s salary per pay period that has been employed over a year. This contribution would be the only expense regarding this pension plan for each pay period (Schroeder, Clark, & Cathey, 2005). Defined benefit plans require future amounts to be received will be paid according to the terms of the plan. Under defined benefit plans, there are requirements that must be met. According to the FASB ASC 715-70-50, the employer must disclose amounts of cost recognized for a defined contribution pension plans and for defined contribution postretirement benefit plans for periods that are presented separately from amounts of cost recognized for defined benefit plans (FASB, 2011).…

    • 395 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Net Assets and Employees’ Retirement Fund. Complete the following activities and submit your answers to your instructor in a Word document formatted to proper APA specifications. Include any relevant supporting computations and explanations. Review the financial information pertaining to the City of Sweetwater in problem 7-13 on pages 215-217 of your text. Review the transactions that occurred during the year ended June 30, 2012 and complete the following: 1. Record the transactions on the books of the Employees’ Retirement Fund. 2. Prepare a Statement of Changes in Net Assets for the Employees’ Retirement Fund for the Year Ended June 30, 2012. 3. Prepare a Statement of Net Assets for the Employees’ Retirement Fund as of June 30, 2012.…

    • 484 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Clark, Robert, and Sylvester Schieber. "The Shifting Sands of Retirement Plans." World at Work Journal, (Fourth Quarter 2000): 6–14.…

    • 1775 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Case 12-02

    • 967 Words
    • 4 Pages

    The summary results of operations for the year ended December 31, 2010, included revenue of $10.7 million and net income of $1.2 million. Shakespeare is planning to issue its financial statements on March 20, 2011. On March 18, 2011, Shakespeare’s management will evaluate new information about one of its accruals and two subsequent events to determine if this information or events represent items that should be recognized or disclosed in the December 31, 2010, financial statements. Medical Benefits Payable For the past several years, Shakespeare has self-insured medical benefits (health and dental) for its employees. The Company records the costs of medical care in the period in which covered events occur and includes its best estimate of the costs that have been incurred but not yet reported (IBNR) in its estimate of the medical benefits payable. Shakespeare looks to the FASB Accounting Standards Codification, which defines IBNR as “losses incurred by the insured entity that have not yet been reported to the insurance entity.” Shakespeare’s management estimates its liability with the assistance of thirdparty experts using actuarial techniques, assumptions, and observations that are based on past experience of claims paid through the balance sheet date. The Company monitors the continued reasonableness of the assumptions and methods used to estimate the IBNR liability each reporting period. Management’s process for estimating its medical benefits payable is disclosed in its “Significant…

    • 967 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    case 12

    • 1909 Words
    • 5 Pages

    1. Should the information pertaining to actual claims incurred as of B/S date that became available after the B/S date be considered in determining management’s best estimate of the medical benefits payable? If so, how does this information impact the amount recognized or disclosed?…

    • 1909 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Brain Teaser Case Study

    • 509 Words
    • 3 Pages

    This statement was included in the Financial Accounting Standards Board pronouncement Statement of Financial Accounting Standard No. 106 and discusses ‘Employers’ Accounting for Postretirement Benefits Other Than Pensions'…

    • 509 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Assume that monthly income will not be sufficient. In at least 100 words, what steps can you take now and/or in retirement to live comfortably in retirement? The steps I can take is making sure to finish school and countie to work on a higher education to fulfill my retirement plan and paying my house before 62 years of age. I should not have any car loans by then and I belive this will help me out so much. I think by the age 48, would be the last time I could buy a new car/truck and start keeping my credits in a very low balance with the help of my wife, we should be able to have the things we want paid off by 62 of age and start…

    • 561 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Shaw, K. W. (2008, March). New accounting rules for defined benefit pension plans. The CPA Journal, 308(0), 32. Retrieved from http://www.nysscpa.org/printverisons/cpaj/2008/308/p32.html…

    • 1392 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    HSA Quiz

    • 2134 Words
    • 18 Pages

    Due to financial constraints, employer-sponsored pension plans have evolved from being primarily defined benefit pensions (to which employees do not have to contribute their own monies) to…

    • 2134 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    With utmost respect, I am like to aware you the fact that, I am really delighted to…

    • 8546 Words
    • 35 Pages
    Powerful Essays
  • Powerful Essays

    Cognitive Bias

    • 1351 Words
    • 6 Pages

    investor gets off track of his financial goals. This can help to eliminate this bias.…

    • 1351 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Recession and HRM

    • 8497 Words
    • 34 Pages

    Furthermore, the GFC seems to have acted as a catalyst in accelerating a move from defined benefit to defined contribution occupational pension schemes provides some examples of changes to pay and benefits within MNCs:…

    • 8497 Words
    • 34 Pages
    Powerful Essays

Related Topics