Q: what is the major difference and the major similarity between the vested benefit obligation and the…
A: Explain the similarities and the differences between Projected Benefit Obligation and Accumulated…
Q: What factors decide whether a pension plan is adequately financed or not?
A: What criteria determine whether or not a pension plan is appropriately funded:
Q: Where a post-employment benefit plan contains characteristics of both defined contribution and…
A: The employer needs to pay post employment benefits in addition to salary. The post employee benefits…
Q: increases the Employee Benefit Expense?
A: Employee benefit expense means Benefits/Compensation provided to the employee other than by way of…
Q: What is fully funded pension plan?
A: A pension plan is termed as a retirement amount, which an individual receives from their insurance…
Q: What is meant by a taxpayer's 'preservation age' and a 'condition of release', why are these…
A: Here discuss about some term related with the taxpayers which are important to get avail the…
Q: Understand the interrelationships among the elements that constitute a definedbenefit pension plan
A: Defined benefit pension plans are the retirement designs that include providing a fixed and…
Q: what is pension plan asset?
A: Definition : The term pension plan assets refer to the funds a corporation can use to satisfy its…
Q: Explain the following terms as used in IAS 19 Employee Benefits: (1) The term 'defined benefit…
A: Defined Benefit Plan Defined benefit plan which is described as the long term employees compensation…
Q: Differentiate between a defined contribution pensionplan and a defined benefit pension plan. Explain…
A: Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after…
Q: Knowledge Check 01 Which of the following statements are correct with regard to defined benefit…
A: OCI is called other comprehensive income
Q: Define benefit pension plans.
A: Pension plan Pension plan is an agreement between the employer and employee. After the retirement of…
Q: Explain how a defined contribution pension plan works.
A: Pension: Pension is a cash payment given to the employees at the time of their retirement. The…
Q: Differentiate between the accumulated benefit obligation and the projected benefit obligation.
A: ABO (Accumulated benefit obligation) and PBO (Projected benefit obligation) are similar in most of…
Q: Define defined benefit plan
A: A defined-benefit plan is a business supported retirement plan in which representative advantages…
Q: Explain how a defined contribution pension plan and how a defined benefit plan work. Which pension…
A: A defined contribution plan is a type of corporate retirement plan in which an employee contributes…
Q: Direct Compensation coverage.
A: The determinants of direct financial compensation can be classified into two categories, external…
Q: Explain the fundamental differences between a defined contribution pension plan and a defined…
A: Defined contribution plan and defined benefit plan are the two types of pension plans.In a defined…
Q: (a) Explain the following as used in IAS 19 Employee Benefits: (1) The term 'defined benefit pension…
A: IAS 19 stands for the purpose of providing guidelines for the accounting processes and disclosures…
Q: Define Homestead allowance.
A: Generally probate laws provide adequate protection to the family members of the decedent whom the…
Q: What is a defined benefit postretirement plan?
A: Pension plan: This is the plan devised by corporations to pay the employees a kind of compensation…
Q: What are the four basic components of pension expense? Select one: A. Service cost, benefits paid,…
A: Answer - To calculate a pension expense of a particular Employee working under him, the employer…
Q: pension fund
A: A retirement fund is a product that invests your savings in retirement. Tax cuts and employer…
Q: Define Contribution Pension Plans.
A: Pension plan: This is the plan devised by corporations to pay the employees a kind of compensation…
Q: Define defined benefit (DB) retirement plan
A: It is such a plan that is taken care of by the employer. In this plan, all the benefits accrued to…
Q: They are the Defined Contribution Plans and Defined Benefit Plans. What are the distinct differences…
A: Retirement plans are segregated into 2 plans Defined Benefit Plan (DBP) Defined Contribution Plan…
Q: Describe the major difference and the major similarity between the vested benefit obligation and the…
A: Differences: The actual present value obligation of the pension that is payable to the employee is…
Q: What are the assumption of differences between pension plans and other postretirement benefit plans?
A: Pension plan: This is the plan devised by corporations to pay the employees an income after their…
Q: The balance of the present value of defined benefit obligation is affected by all of the following…
A: solution concept The balance of the present value of defined benefit obligation is affected by the…
Q: For Pension Plans: A. Describe the differences between a Defined Benefit pension plan and a Defined…
A: Defined Benefit Pension Plan Defined benefit pension plan can clearly describes as it is absolutely…
Q: Define unfunded pension liability
A: Pension Liability: Pension liability refers to the amount of money that a private company,…
Q: What other types of pension plans exist, and how do they compare to Defined Contribution Pension…
A: The Answer
Q: What is a defined Contribution Pension Plan?
A: A defined contribution pension plan It is an arrangement where there is a contribution by employer…
Q: Define Pension plan assets.
A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…
Q: What determines whether a pension plan is underfunded or overfunded?
A: An overfunded pension plan is a plan which possess more assets as compared to the liabilities. An…
Q: Which of the following cause a decrease in the funded status of a defined benefit plan? (Select all…
A: Plan obligation are the amount that is required to pay to employees as a benefit
Q: Explain Pension Benefit Guarantee Corporation
A: Pension fund: A fixed sum of money is receivable in future or after the age of retirement, which the…
Q: Define underfunded pension plan
A: Pension plan which is also known as retirement plan is a type of investment, which helps to…
Q: What is a pension plan?
A:
Q: What are the key elements of a defined benefit pension plan?
A: Definition: Pension expenses are used to report an employer’s annual cost for maintaining an…
Q: Describe the obligations of pension.
A: A pension is a plan of retirement that requires contribution from both the employer & the…
Q: Name three approaches to measuring benefit obligationsfrom a pension plan and explain how they…
A: Pension: A fixed sum of money receivable in future or after the age of retirement, which the…
Q: Define defined contribution (DC) retirement plan
A: A retirement plan refers to the savings plan in which people have invested some portion of their…
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- Which of the following statements is true? Select one: Profit sharing plans may not offer in-service withdrawals Pension and profit sharing plans are both subject to mandatory funding requirements Profit sharing plans allow annual employer contributions up to 25 percent of the employee’s covered compensation The legal promise of a profit sharing plan is to pay a pension at retirement Clear my choiceIndicate by letter whether each of the events listed below increase (l), decreases (D), or has no effect (N) on an employer’s projected benefit obligation. Events Interest cost. ________ Amortization of prior service cost. ________ A decrease in the average life expectancy of employees. ________ An increase in the average life expectancy of employees. ________ A plan amendment that increases benefits is made retroactive to prior years. ________ An increase in the actuary’s assumed discount rate. ________ Cash contributions to the pension fund by the employer.…Carson Company sponsors a single-employer defined benefit pension plan. The plan provides that pension benefits are determined by age, years of service, and compensation. Among the components that should be included in the calculation net pension cost are service cost, interest cost, and actual return on plan assets. Required: A. What two accounting problems result from the nature of the defined benefit pension plan? Why do those problems arise? B. How should Carson determine service cost component of the net pension cost? C. How should Carson determine the interest cost component of the net pension cost? D. How should Carson determine the actual return on plan assets component of the net pension cost?
- An employer invests money to establish a fund of money to pay future nonqualified deferred compensation plan benefits. The investment earnings are: Select one: a. Tax deferred until the benefits are paid b. Taxable to the employer c. Tax exempt d. Taxable to the employeeDunder Miflin uses defined contribution plans for their employees. A formula that is used in a defined-contribution plan Question 21 options: a) defines the benefits that the employee will receive at the time of retirement. b) ensures that employers are at risk to make sure funds are available at retirement. c) requires an employer to contribute a certain sum each period based on the formula. d) ensures that pension expense and the cash funding amount will be different.In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee. b. requires that pension expense and the cash funding amount be the same. c. defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees. d. defines the benefits that the employee will receive at the time of retirement.
- A business entity's taxable income before the cost of certain fringe benefits paid to owners and other employees is $41,600. The amounts paid for these fringe benefits are reported as follows. Note the following: (1) Assume the fringe benefit plans are not discriminatory and (2) The business entity is equally owned by three owners. Owners Other Employees Group term life insurance $4,400 $7,270 Lodging incurred for the convenience of the employer 2,930 4,680 Qualified retirement plan 2,500 5,620 a. Calculate the taxable income of the business entity if the entity is a partnership, a C corporation, and an S corporation. The taxable income of the business entity, if it is a partnership, is $____________. If the entity is a C corporation, it is $_______________, and if the entity is an S corporation, it is $_____________.Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2021? a. Defined benefit plans are limited to an annual benefit to an employee of the lesser of $58,000 or 100% of the employee's average compensation for the highest three years. b. Defined contribution plan contributions are limited to the lesser of $230,000 or 25% of an employee's compensation. c. Defined contribution plan contributions are limited to the lesser of $58,000 or 100% of an employee's compensation. d. If an employer has more than one type of qualified plan, a maximum deduction of 100% of compensation is allowed.The entity’s monthly contributions to the SSS for the benefit of its employees are accounted for as defined benefit plans. a. True b. False According to PAS 19, contributions to a defined contribution plan are recognized a. at each year-end b. where an employer makes those contributions c. when an employee has rendered service in exchange for those contributions d. at the beginning of each reporting period
- Calculate the total remittance due to Revenu Québec for this remitting period, if a Québec employer's total statutory deductions including employer and employee portions are Québec Pension Plan \$7,000.00, Employment Insurance $5,600.00 , Québec Parental Insurance Plan $2,500.00 , provincial tax $15,000.00 plus employer contributions to the health services fund $3,000.00 , and employer contributions to Commission de la santé et de la sécurité du travail \$1,200.00:Carson Company sponsors a single-employer defined benefit pension plan. The plan provides that pension benefits are determined by age, years of service, and compensation. Among the components that should be included in the calculation, net pension cost is service cost, the interest cost, and actual return on plan assets. What two accounting problems result from the nature of the defined benefit pension plan? Why do these problems arise?
