Good afternoon everyone! First I would like to thank you all for this session module, especially Professor Liu and Kevin Dow. Thank you for your contributions in this module which broaden our views a lot.
This presentation is the crystal of our group members, everyone made contribution on it.
Our presentation will be divided into two parts. In the first part, I would like to show couples of “take-aways” in this module. Then, for the second part, Lady Wang Dan will make explanation to the questions, of course, only few typical questions will be explained in details, rest of them will be reviewed quickly. 1. Accounting and finance
Actually the accounting provides information to the shareholders, creditor, government who are outside of
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Some of us may suggest investing the pension into stock. But I believe more that most of us will say No for such proposal because of its high risk. But don’t worry, you are not alone.
In 1998, some NPC member had already give suggestions like this. The Prime Minister Zhu, he said NO to this suggestions because of the high risk in stock. We must keep safety first. So such proposal is killed at that time. If anyone who is interested in his speech, you could find out his idea in “Mr.Zhu’s Speech Record” .
In 2012, the same investing plan was proposed again, just like 14 years most people still reject or doubt at such plan. But at this time, the government accepted the proposal and made a realistic schedule for it because the situation of pension was worse than 14 years ago. In the government schedule, they will invest 30% of pension insurance into stock and stock bond, the totally amount is about 600 billion.
Do you feel scared with this plan? Obviously the answer is yes. Pls look at index of shanghai security since 1990. We could find out that the annual return of stock is about 14%. This diagraph shows the annual return of bond is about 3.5%. The difference between them is more than 10%. What is your feeling? Better or not?
We can see the risk of return from stock is much better than bond. But why people still prefer to invest the money in bond? Maybe it is because of the myopic loss aversion, people always try to check the risk
On August 11, 1998, United States Amoco Corporation (Amoco) and The British Petroleum Company p.l.c. (BPC) announced the BPC merger with Amoco. With a combined number of participants of 40,000 and $7 billion investment assets under management, the merged pension and savings plan of the new company is viewed by both management and employees as a bellwether of the success of the merger. Therefore, the new investment team must be able to “harmonize” the very different two original plans.
This was by far the most challenging course that I have encountered while obtaining my Master’s Degree in Educational Technology from UCMO. That is not a negative comment as this course has actually impacted me professionally more than any other course I’ve taken to date. This course has taken more time to complete the assignments, more of my attention to detail, and more of my creativity. The last point was the best part about this course. I consider myself to be fairly creative and this course definitely allowed me to do that while bringing my somewhat odd personality to a professional forum. For this I am grateful. Let’s get to the good stuff, shall we?
For example, stocks traditionally have a potential for higher return than bonds over time because stocks are usually a riskier investment than bonds.
The course text is progressing on the right track and we are fast approaching the end.
The change in the return on investment assumption is for all US plans. The economic consequence is that there will be less injection of cash by these pension owners during the lifetime of their pension. In 1984 the corporation established a new plan, which goal was an improvement in the minimum pension benefit. This constituted in a restructure of the Salaried Employees’ Retirement Plan.
As fellow students and buddies Sam and I are fully (and painfully) aware of how difficult and troubled this presentation has been for some of you. We are really sorry for that, and although things might not have work out the expected way. I am sure the people in charge of this module have done its best to correct any immediate problems and to learn from this presentation to make it better for the future.
The changes in pensions and leases have been proposed by FASB to provide more useful information to investors and credits. This paper will analyze the factors that led to the changes in both areas including the four types of pensions, the components of the net benefit expenses, the importance of leases in financial accounting and some background on the controversy, and the pros and cons of the proposals for pensions and the leasing standards. Finally, this paper will discuss how the changes compare to International Financial Reporting Standards (IFRS)
A pension is the most popular way to turn your superannuation money into a regular income stream for your retirement.
I decided to prepare this sheet as a short description of some of the important themes that we’ve taken up in lecture in the second half of the quarter. In preparation for our final, I would recommend reviewing your notes and textbook, putting together answers to each of these. Indeed, if you have good answers in your head (making use of examples shown in class) for each question, you should do well.
When people are asked how people will plan or rethink for retirement, the first thing that people will think about, is saving. There are some positive ways to save money, the author suggests to the readers to sign up for 401(k) plan. It is a plan help employees save for retirement, 401(k) should allow anyone to build up a nice nest egg. For example, “In Dave Ramsey’s The Total Money Makeover, for instance, he gives us “Joe and Suzy Average” who invest $7,500 per year ($625 per month) using their tax-free retirement account. They do this from age 30 to 70, getting 12 percent interest per year. At the end, they have $7,588,545 to their names.” When people invest in 401(k) plan, it is safer and more money in retirement and it also has a benefit that you don’t need to pay for tax when you take the money out. Beside 401(k), people prefer to invest money in the stock market for retirement-plan. According to author “ During a recent 40- year period,
In order to better grasp the idea of accounting for pensions, understanding the different intricacies of various plans and their characteristics is a must. For example, there are two types of defined pension plans; a defined contribution plan, and a defined benefit plan. In a defined contribution plan, the employer agrees to contribute to a pension trust a certain sum each period, based on a formula. This formula encapsulates factors such as age, length of employee service, employer’s profits, and compensation level. A common form of this plan is a 401(k) plan. This type of plan only defines what the employer will contribute and makes no promise regarding the ultimate benefits paid out to the employees. As it will be discussed in more depth later, the accounting for this type of plan is rather straight forward and is covered by several
In addition, as I miss information from it, I will introduce my thoughts about the Tuesday's lecture with date 7/03/2017.
Our company has been providing their employees with a pension plan for many years. However, these benefits plans have to be reviewed and possibly revised after the recent acquisition of XYZ Company. Through the use of a funding agency, payments are invested so that periodic payments can be made to the employee during retirement. Defined contribution and defined benefit are the two most common types of pension plans.
Pension funds are any plans, funds or schemes which provide retirement income. These funds are important to shareholders of listed and private companies and they are particularly important to the stock market which is dominated by large institutional investors. This essay discusses the idea of pension funds and the pension crises. It defines the issues of pension funds, talks about the various pensions, categorizes them, and discusses the pension crisis and its implications to the US in particular and to the world in general.
As and investor, you are overwhelmed with advice in newspapers, magazines, and mailings discussing what to invest in for a successful retirement nest egg, when to start saving for retirement and who to invest with. There are millions of people who realize that an investment portfolio for retirement is necessary, but do they really understand the investment instruments and the amount they must invest for tomorrow? The subject of retirement is a fascinating area but it also could be a fuzzy subject without the correct amount of knowledge, understanding and professional guidance. The number one question of concern for individuals facing retirement issues is whether or not they