Differentiate between the accumulated benefit obligation and the projected benefit obligation.

Q: Define the term recovery allowance percentages?

A: Tax based depreciation rates are provided by the IRS and are called MACRS which is the modified…

Q: compensation in commodatum.

A: Commodatum is nothing but a roman law which states that commodatum is an agreement which is a type…

Q: Describe Defined Benefits Plan and Defined Contribution Plan. 2. What is the difference between…

A: The question is related to Employees Benefits.Both the Plan are post employment Plans. Accounting…

Q: How to Use Compound Interest Factors for Annuities

A: Compound interest factor for annuities is used to compute the present and future value of annuities,…

Q: Explain the difference between defined-benefit and defined-contribution plans?

A: Solution:- Pension plans are to provide a security to the retiring employees after their retirement.…

Q: A Defined Benefit Plan is a plan

A: There are several benefit plans available for the benefit of the employees working in different…

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: The ability to meet short term obligations is termed

A: A short-term liability is referred to as the financing obligation that being liable to an…

Q: How is the Accumulated Benefit Obligation (ABO) different from the Projected Benefit Obligation…

A: Accumulated Benefit Obligation and Projected Benefit Obligation both are terms used in the pension…

Q: What is tmes-Interest earned?

A: Times-interest earned: This ratio quantifies the number of times the earnings before interest and…

Q: how do compute thesocial security taxable earnings?

A: Federal income taxes (FIT) are imposed in USA. Tax is calculated by applying tax rates which…

Q: Which of the following statements is not correct about defined contribution plans?

A: The defined contribution plan shows the retirement benefit to the employees of the company. The…

Q: Define the term Equal-Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: Define defined benefit plan

A: A defined-benefit plan is a business supported retirement plan in which representative advantages…

Q: Net defined benefit asset results in Current service cost Interest expense Interest revenue

A: As per IAS 19 of IFRS mentions how the accounting should be done to employee benefit other than…

Q: Distinguish among the vested benefit obligation, the accumulated benefit obligation, and the…

A: Vested benefit obligation (VBO) VBO is obtained as the present value of the benefit obligation which…

Q: Define each of the following terms:g. Lessee’s analysis; lessor’s analysis

A: The lessee's analysis how leasing an asset is less expensive than the purchasing of the asset.

Q: Differentiate between a stated rate of interest and effective rate of interest.

A: Answer: Stated interest rate: This is the interest rate quoted or the average rate offered by the…

Q: Plan forfeitures under a defined benefit plan may be allocated to rem manner or go towards reducing…

A: A defined benefit plan refers to the plan which is based around the employer who pays a defined sum…

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

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: Define the Equal-Payment Series?

A: Answer: The main goal of this investment method is to calculate the present value of equivalent…

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: Define Vested benefits.

A:

Q: compute the present value of interest and the principle amount

A: Present value is the sum of present value of future cashflow discounted with the required rate of…

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 is net interest? Identify the elements of net interest and explain how they are computed.

A: Net interest- Net interest typically is the difference between the interest earned by the…

Q: What is a Postretirement Benefit Plan?

A:

Q: According to PAS 19, how are other long-term benefits accounted for?

A: Philippine Accounting Standards (PAS) are the set of accounting standards based on the International…

Q: In determining the present value of the prospective benefits (often referred to as the defined…

A: Defined benefit obligation means a defined plan of contribution from employer to employees'…

Q: Write the definition, recognition, measurement and derecognition of BORROWING COST

A: Following is the answer to the given question

Q: Define net pay.

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…

Q: How do defined-benefit plans differ from defined contribution plans?

A: For long, pension has been taking care of post-retirement needs of a large section of retirees.…

Q: What is the difference between a contribution- and a benefit-orientedretirement plan?

A: Defined contribution plan is a retirement plan which gives an option for the employees to grow tax…

Q: Over what period of time should compensation cost be allocated?

A: As per GAAP, the compensation cost must be recognized over the service period of an employee.For…

Q: Define defined contribution plan

A: A defined-contribution (DC) plan is a retirement plan that lets an employee to contribute a fixed…

Q: Explain different types of Annuity and perpetuity concept with appropriate examples.

A: Annuities are defined as the contracts, which are issued as well as distributed or sold through the…

Q: Define the term Effective interest?

A: Interest is the cost charged on amount lent to a borrower by a lender for use of his assets i.e.…

Q: In determining the present value of the prospective benefits (often referred to as the defined…

A: Defined Benefit Obligation: A defined benefit plan is a sort of post-employment benefit that ensures…

Q: Define each of the following terms:a. Lessee; lessor

A: Lessee is a person who holds lease of a property or he is the person who has given  the property On…

Q: If the present value of the defined benefit obligation exceeds the fair value of the plan assets,…

A: solution concept If the present value of the defined benefit obligation exceeds the fair value of…

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.