If pension expense recognized in a period exceeds the current amount funded by the employer, what kind of account arises, and how should it be reported in the financial statements?  If the reverse occurs - that is, current funding by the employer exceeds the amount recognized as pension expense - what kind of account arises, and how should it be reported?

Q: Which of the following is not a characteristic of a defined-contribution pension plan? The…

A: Contribution pension plan is a retirement plan in which both the employer and the employee…

Q: The employer has an obligation to provide future benefits for:     A. Defined benefit pension…

A: Defined benefit and defined contribution are the  retirement pension plan

Q: The Employee Retirement Income Security Act (ERISA) requires that companies fund defined-benefit…

A: The post-retirement benefits will be benefits, other than annuity disseminations, paid to…

Q: increases the Employee Benefit Expense?

A: Employee benefit expense means Benefits/Compensation provided to the employee other than by way of…

Q: Which component of Kensington’s periodic pension cost would be shown in OCI ratherthan P&L?A .…

A:

Q: In a defined contribution plan, a formula is used that: Ensures that pension expense and the cash…

A: Post employment benefit plans classified into  1: defined contribution plan 2: defined benefit plan…

Q: The components of postretirement benefit expense are similar to the components of pension expense.…

A: Other postretirement benefits: The postretirement benefits which are provided by employers, other…

Q: Contributions of the employer for the benefit for the benefit of the employee to retirement,…

A: Income tax:    It is the amount a person is liable to pay on the earned amount in an accounting…

Q: Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan.…

A: Under a non contributory pension or defined benefits plan, only an employer contributes and no…

Q: Which of the following is not considered by an actuary when determining the annual contribution to a…

A: The correct answer with explanations are as follows.

Q: Alternative methods exist for the measurement of the pension obligation (liability). Which measure…

A: Answer: The pension obligation is liability and it is to be paid once the employees retire.

Q: Which type of pension plan would you prefer to be covered under (i.e., defined benefit, defined…

A: In this there are many types of pension plans available and each have own characteristics.

Q: Describe how a company's pension plans are reported when there are many plans, some of which are…

A: Organizations establish a single pension plan for its employees. However, some organizations have…

Q: 1 a. Briefly describe how are pension gains and losses recognized.    b.  Explain what are pension…

A: Pension gain and losses arise due to change in the underlying assumptions which affect the total…

Q: If a pension plan is both contributory and qualified, it is

A: First let us understand the key terms in the question. Pension plan- A Pension plan is an…

Q: Differentiate between “accounting for the employer” and “accounting for the pension fund.”

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…

Q: Depending on when an unfunded pension liability is to be paid, it will be classified on the balance…

A: Yes, unfunded pension liability will be classified as a liability on the BS Balance Sheet It is…

Q: Describe what factors contribute to the pension benefit obligation. Discuss the effect of the…

A: A projected benefit obligation (PBO) is an actuarial calculation of how much money a firm will…

Q: Under a qualified pension plan, I. the yearly earnings on the pension plan assets are taxable income…

A: Introduction Pension plan assets are defined as the assets bought using contributions from pension…

Q: A company shows in its balance sheet, a provision for pension costs, Select one: a. This company has…

A: Defined Benefit Plan:-It is a benefit in which employees get extra benefits under law at the time of…

Q: Pension benefits contributed by the employer affects both the projected benefit obligation and…

A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at…

Q: Define prior service cost. How is it reported in the financial statements? How is it included in…

A: Pension:  A pension is a type of retirement plan in which an employer makes a contribution to a pool…

Q: When an entity amends a pension plan, past service cost should be Recorded in other comprehensive…

A: Under a Pension plan, a regular amount is required to be contributed to a pension account and such…

Q: The return on plan assets is the increase in plan assets (at fair value), adjusted for contributions…

A: Return on plan assets is calculated as Plan assets * Expected Return

Q: hange in the benefit plan assets?   a.contributions from the employer. b.actual/expected return on…

A: Employees with defined benefit plans receive a fixed, predetermined benefit when they retire. The…

Q: Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan.…

A: Introduction:- Non contributory plan is a pension. Noncontributory plans are greater beneficial for…

Q: describe the two elements which determine the net periodic pension expense.

A:

Q: Define the service cost component of the periodic pension expense.

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…

Q: In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain…

A: A defined benefit plan is the plan which is contributed by the employer on behalf of the employee to…

Q: What are the benefits provided by Employee Retirement Income Security Act?

A: The Employee Retirement Income Security Act is an organizational law that recognizes the minimum…

Q: Distinguish between defined contribution and defined benefit pension plans. Justify the employer's…

A: The Answer :

Q: How does each component of pension expense affect pension expense during the period (increase,…

A: Pension expense is referred to as an expense on which the corporation or business usually get…

Q: In a defined contribution plan, a formula is used that: O Requires an employer to contribute a…

A: Defined contribution plans are funded by the employees and the amount if collected for their…

Q: components of pension expense

A: Pension expense is the cost incurred by employer towards employee's pension plans.

Q: accounting for employee Pension Trust Funds

A: Introduction Accounting Pension Trust Funds: The computation of yearly pension expenditure and the…

Q: What is meant by “past service cost”? When is past service cost recognized as pension expense?

A: Prior Service Cost- When an employee is granted a pension revision, the amount of benefit earned…

Q: Explain what are pension gains and losses and why they are not recognised in net income the period…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: In the reconciliation of the beginning and ending fair value of the plan assets, a company should…

A: Fair Value of Plan Asset: It is the fair market value of plan assets that determines how much money…

Q: which of the following are non financial claims?   pension obligations taxes payable both…

A: Instead of a physical net value, financial claims are based on contractual claims.

Q: What are the components that might be included in the calculation of net pension cost recognized for…

A: Pension:   A fixed sum of money, receivable in future or after the age of retirement, which the…

Q: What is meant by “prior service cost”? When is prior servicecost recognized as pension expense?

A: Prior service cost: The change in the amount of projected benefit due to changes in the act or rules…