The two main types of pension plans are defined benefit plans and defined contribution plans. Explain the difference between the two. How does the accounting for each differ? With defined benefit plans, there are several levels of benefit obligations for the company. List these and describe what each represents. Which does GAAP require with recognition and why?

Q: When a company sets up a defined contribution pension plan, the ________ bears all the risk, and the…

A: When a company sets up the contribution pension plan then the employer will bear all the risks, and…

Q: A company currently offers it’s employees a defined benefit pension plan, but is looking into…

A: Defined Benefit pension plan A defined-benefit plan is an employer-sponsored retirement plan where…

Q: explain how a defined contribution pension plan works.

A:

Q: Under a defined contribution pension plan _________________ bear the investment risk, while under a…

A: Lets understand the meaning of defined benefit plans and defined contribution plan. Defined benefit…

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: 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: 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: Carson Company sponsors a single-employer defined benefit pension plan. The plan provides that…

A: A defined benefit pension plan is one where a company pays a set sum of money to retirees or workers…

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: 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 of the following statements regarding asset ceilings for overfunded and underfunded pension…

A: A firm retirement plan with more assets than obligations is known as an overfunded pension plan…

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: 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: 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: 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: look over the three most important components of the pension expense. The treatment of expected and…

A: Introduction  Companies account pension expense on accrual basis, accounting for pension plan…

Q: Under IFRS, any difference between the pension expense and the payments into the pension fund plan…

A: Pension expense and the contribution to pension fund are recorded through pension liability/asset…

Q: Describe the reporting of pension plans for a companywith multiple plans, some of which are…

A: Multiple pension plans:Companies maintain a single pension plan for their employees. But some…

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: 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: Which of the following correctly describes defined benefit (DB) pension plans? A-A typical example…

A: Defined benifit is also written as DB. It is the pension plan in which the employee will receive the…

Q: and discuss the key accounting issues in determining the method of accounting for defined benefit…

A: Pension Accounting Many organizations provide additional benefits to their employees in addition to…

Q: Current accounting standards require that the discount rate used for pension plans be:   Multiple…

A: As per IAS 19 discount rate used for pension plans be considered as following

Q: What is a private pension plan? How does a contributorypension plan differ from a noncontributory…

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

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

A: The Answer :

Q: The two main types of pension plans are defined benefit plans and defined contribution plans.…

A: Pension plan is a plan under which either the employer or the employee contributes small amount of…

Q: explain why a Defined Contribution (DC) pension plan cannot have a

A: Pension plan is the retirement plan that involves accumulation of funds by the contribution of the…

Q: What factors must be considered by the actuary in measuringthe amount of pension benefits under a…

A: Actuarial valuation is the assessment of the pension plan as required stutorily wherein the…

Q: In the discussion of employees' pension plans, your book talks about two pension plans - Defined…

A: Both contributed on regular basis.

Q: What other types of pension plans exist, and how do they compare to Defined Contribution Pension…

A: The Answer

Q: The financial disclosures related to a pension plan should include

A: Introduction As per relevant standard if there is any pension plan entity needs to disclose the…

Q: Which of the following types of pension plan will provide benefits that are dependent on the return…

A: Defined Contribution Plan Defined contribution plan which allows the employees and the employer to…

Q: Classify the following fixed costs as normally being either committed or discretionary:e. Pension…

A: Committed cost:   Committed cost is incurred as a result of organizations’ ownership or use of…

Q: Provide some examples of Defined Contribution Pension Plans in the State of Washington

A: Meaning of Defined Contribution Pension Plan- is a type of pension plan funded by contributions from…

Q: A Keogh plan is a type of qualified pension plan for self-employed individuals. An individual or…

A: A Keogh plan is described as a type of retirement plan for individuals who are self-employed and…

Q: In what ways are pension plans and other post-retirement benefit programs different, and why

A: This question explains about  pension plans and other post-retirement benefit programs different,…

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…