Pension plan : This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension. Types of pension plans: Defined contribution pension plans : In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits. Defined benefit pension plans : In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age. To mention : The type of pension plan offered by Corporation M

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Answer 1

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

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Question 4: (Maximum 300 words ) Critically evaluate the three measurement approaches under IFRS 17 for different types of insurance contracts that would be applicable with effect from January 1, 2023, unless the Insurance Companies opt for an early adoption.

A2 7b May I please have the answer in formula form and not excel. thx:) 7. You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on your retirement savings. You plan to make your first withdrawal from your retirement savings when you retire at age 65 and your last withdrawal one month before your 85th birthday. Based on family history, you expect to live until exactly age 85. Your plan is to have a total of $1 million when you retire. Your current salary is $36,000 per year, or $3,000 per month. Your personal tax rate is approximately 30%. You estimate that you can earn an average return of 12% APR compounded annually on any money you invest over the next 60 years. You want to start putting aside a fixed amount of money at the end of every month until your retirement at age 65. You will make your first deposit one month from now…

A2 7a May I please have the answer in formula form and not excel. thx:) 7. You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on your retirement savings. You plan to make your first withdrawal from your retirement savings when you retire at age 65 and your last withdrawal one month before your 85th birthday. Based on family history, you expect to live until exactly age 85. Your plan is to have a total of $1 million when you retire. Your current salary is $36,000 per year, or $3,000 per month. Your personal tax rate is approximately 30%. You estimate that you can earn an average return of 12% APR compounded annually on any money you invest over the next 60 years. You want to start putting aside a fixed amount of money at the end of every month until your retirement at age 65. You will make your first deposit one month from now…

Answer 2

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Expert Solution & Answer

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Answer 3

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Expert Solution & Answer

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Answer 5

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Answer 6

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

Answer 7

Chapter 17, Problem 17.5BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Types of pension plans:

Defined contribution pension plans: In such plans, employers contribute fixed amounts annually, to the pension fund. The benefit amounts are based on size of pension fund available at the time of retirement. There is no commitment on the part of the employers to pay fixed retirement benefits.

Defined benefit pension plans: In such plans, employers pay annual fixed contributions to employees as retirement benefits. Employers promise to pay fixed retirement benefits, which are computed based on the service period of employee, annual compensation of the employee, and age.

To mention: The type of pension plan offered by Corporation M

Answer 8

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

Answer 9

(2)

To determine

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

Answer 10

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

Answer 11

(3)

To determine

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

Answer 12

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Answer 13

(4)

To determine

To describe: The accounting treatment of pension plan for 2015

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 17 - Prob. 17.1Q Ch. 17 - Prob. 17.2Q Ch. 17 - Prob. 17.3Q Ch. 17 - What is the vested benefit obligation?Ch. 17 - Prob. 17.5Q Ch. 17 - Prob. 17.6Q Ch. 17 - Name three events that might change the balance of...Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - Prob. 17.10Q

Solution Summary: The author explains the type of pension plan offered by Corporation M.

Concept explainers

To mention: The persons who suffer the risk of reduction in retirement benefits in the plan offered by Corporation M

The amount entitled by an employee who contributes $1,000 in first year, and leaves the company in early second year, when the mutual fund of contributions value is 2%

To describe: The accounting treatment of pension plan for 2015

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Chapter 17 Solutions