AC302 Intermediate Accounting III Unit 4 Discussion

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Dated: 6th Jan'18 10:35 PM
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AC302 Intermediate Accounting III Unit 4 Discussion 

This course will present you with many Discussion opportunities in which you will need to respond to other people’s opinions and comments. Respond to your Discussion topic after you have completed the Reading.

Pension Accounting

Many business organizations have been concerned with providing for the retirement of employees since the late 1800s. During recent decades, a marked increase in this concern has resulted in the establishment of private pension plans in most large companies and in many medium- and small-sized ones.

The substantial growth of these plans, both in numbers of employees covered and in amounts of retirement benefits, has increased the significance of pension costs in relation to the financial position, results of operations, and cash flows of many companies. In examining the costs of pension plans, a CPA encounters certain terms. The components of pension costs that the terms represent must be dealt with appropriately if generally accepted accounting principles are to be reflected in the financial statements of entities with pension plans.

Answer the following questions in the Discussion Board:

Define a private pension plan. How does a contributory pension plan differ from a noncontributory plan?
Differentiate between “accounting for the employer” and “accounting for the pension fund.”
Explain the terms “funded” and “pension liability” as they relate to:

The pension fund.
The employer.
Discuss the theoretical justification for accrual recognition of pension costs.
Discuss the relative objectivity of the measurement process of accrual versus cash (pay-as-you-go) accounting for annual pension costs.
Distinguish among the following as they relate to pension plans.
Service cost.
Prior service costs.
Vested benefits.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2016). Accounting for pensions and postretirement benefits. Intermediate accounting (16th ed.). (p. 1175). New York, NY: John Wiley & Sons, Inc.
AC302 Intermediate Accounting III unit 4 discussion
Answered by paulw
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Dated: 6th Jan'18 10:35 PM
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AC302-solution-main.docx (25.76 KB)
Preview of AC302-solution-main.docx
in     the   fund means     liability       for   amount owed     employees       employer                  term funded     relates       refers   the relationship     made       to   pension fund     the       full   of pension     year       the   is said     fully       means   there is     payments       The   pension liability     relates       basically   to the     expense       still   for the     This       to   other expense     account       to   employer                     for       primarily   on the     of       this   was a     for       going   try and     way           method basically     pension       by   employer over     that       for     These     be       the   retires, over  
AC302-additional-content.docx (18.98 KB)
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Pension     incur   the time     an       to   organization, this     be       employee’s   over a     time       b)   you are     accounting       costs,