Reporting for Pensions and Other Postretirement Plans Several issues have to be considered in the wake of the firm’s recent acquisition of a new company. First, the acquired company has two different pension plans whose reporting requirements are unfamiliar to the firm. Second, the acquired company has two segments that do not fit the firm’s requirements, and should be targeted for closure. This memo describes the reporting requirements of pension plans, namely, defined contribution plans, defined benefit
Words: 1001 - Pages: 5
3-2 Week 2 Lecture: Analyzing Financing Activities Financial Statement Analysis Overheads from K.R. Subramanyam textbook resources as amended by F.Hui for FIN324 2016. CHAPTER Liabilities (including employee benefits), Equity And off balance sheet transactions Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 3-3 Overview of Chapter Companies operations are financed
Words: 5351 - Pages: 22
billion. 2. Solving pension issues. Evidence: The automaker hopes to reduce its $134 billion long-term global pension obligations by $26 billion, a problem that has been a noose around GM’s neck for years. Chosen problem: Solve pension issues.it accounts for a greater amounts of money.Secondly, Pension is a never ending issue till the company survives B. Alternative course of action to address the problem- -Lump-sum pension to ease obligation, reduce its long-term pension liabilities for salaried
Words: 303 - Pages: 2
PassMaster Questions Lecture: Financial 6 Pension Plans CPA-00679 Type1 M/C A-D Corr Ans: D PM#1 F 6-01 1. CPA-00679 FARE R02 #8 a. b. c. d. Page 19 Which of the following disclosures is not required of companies with a defined-benefit pension plan? A description of the plan. The amount of pension expense by component. The weighted average discount rate. The estimates of future contributions. CPA-00679 Explanation Choice "d" is correct. Although pension accounting has extensive disclosures
Words: 30153 - Pages: 121
Midterm Exam Review 1.The revenue recognition principle provides that revenue is recognized when? Pages 907-8 Dot Point, Inc. is a retailer of washers and dryers and offers a three-year service contract on each appliance sold. Although Dot Point sells the appliances on an installment basis, all service contracts are cash sales at the time of purchase by the buyer. Collections received for service contracts should be recorded when? An alternative available when the seller is exposed to continued
Words: 2123 - Pages: 9
components of pension expense? How do the components of pension expense differ among the various types of contribution and benefit plans? In the calculation of pension expense for a defined benefit plan, what are the most complicated calculations? Why? The components of pension expense are made up service costs, service cost, interest on the liability, return on plan assets, amortization of prior service cost, and gain or loss. 1 Service costs is the expense caused by the increase in pension payable to
Words: 319 - Pages: 2
Flexible Benefit Plan (FBP) that allows employees to choose from numerous grouped plan options, or employees can pick and choose individual benefits. Employees have the option of choosing health coverage including medical insurance, dental insurance, or vision insurance. For other health insurance, qualifying employees may choose to continue health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Other benefits available to employees include: Pension plan, accidental
Words: 1871 - Pages: 8
Benefits Program A benefit plan that includes the following benefits is personally appealing to me: 1. Health (other than dental or vision) 2. Life insurance 3. Dental 4. Vision 5. Temporary disability (accident and sickness) 6. Long-term disability 7. Code Section 125 (premium conversion, FSAs, cafeteria plans) 8. Dependent care (either through a facility or by reimbursement) 9. Supplemental unemployment 10. Prepaid legal 11. Severance pay 12. Apprenticeships and training 13. Scholarship
Words: 1505 - Pages: 7
This article was written to explore why employees love pension plans and why companies try their best to avoid them. A pension is a sponsored company fund that purpose is to provide companies employees with a livable income for retirement. There are two types of pensions, contribution and benefit plans. Contibution the most common and simpler of the two, it is the amount of funds contributed by the company. These funds are invested over the span of the employee career. The balance in the account
Words: 506 - Pages: 3
Acquisition of ABC Company: Pension Plan and Segment Reporting The acquisition of ABC Company resulted in the acquisition of its two pension plans, to include a defined contribution plan, and a defined benefit plan. The transaction also resulted in XYZ Company gaining control of two segments that offer no real value to its current business, as they are redundant, and therefore will be eliminated. What follows is an overview of the reporting requirements for the pensions, and what must take place
Words: 1147 - Pages: 5
