Bill Haley is learning about pension accounting. He is convinced that in years when companies record liability gains and losses, total comprehensive income will not be affected. Is Bill correct? Explain.
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: 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 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: 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: Dunder Miflin uses defined contribution plans for their employees. A formula that is used in a…
A: Pension: Pension is a cash payment given to the employees at the time of their retirement. The…
Q: Which of the following factors is least likely to affect the amount of retirement benefits under a…
A: Defined benefit pension plans are the retirement designs that include providing a fixed and…
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: A headline in the Wall Street Journal stated, “Firms Increasingly Tap Their Pension Funds to Use…
A: The difference between the pension assets and pension liabilities is known as excess assets i.e.…
Q: 4.. A. What are the main differences in the management of a defined benefit pension plan, compared…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following does not affect the measurement of the defined benefit obligation? A.…
A: A defined benefit plan is a type of retirement savings plan which provides pension to employees…
Q: Lamont Corporation has a pension plan in which the corporation makes all contributions and employees…
A: Pension plan: This is the plan devised by corporations to pay the employees an income after their…
Q: A tax-advantaged pension plan, such as a 401(k), that both employer and employee may contribute that…
A: 401(k) is a defined contribution pension plan in which employee and employer can make contributions…
Q: pension
A: Introduction A cash balance pension plan is a plan where the participating employees would receive a…
Q: Why is pension plan underfunding not a concern in your present employment?
A: Definition of pension plan: This is the plan devised by corporations to pay the employees an income…
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: The projected benefit obligation is the measure of pension obligation that __is not sanctioned…
A: The three components of pension expense 1. Service cost, 2. the interest cost, 3. expected return…
Q: Many business organizations have been concerned with providing for the retirement of employees since…
A: Please find the answers to the above questions below:
Q: _1. If a company has an underfunded defined-benefit pension plan: A. no payment may be made to…
A: Underfunded Defined Pension Plan:-It is a company's pension plan where it has more liabilities than…
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: What does the “pension asset” represent? Are you interviewing with a company whose pension plan is…
A: Pension Obligation: It refers to the commitment provided by the employer to pay its employees, the…
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: If pension expense recognized in a period exceeds the current amount funded by the employer, what…
A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…
Q: The vested benefits are employee benefits that are not conditional on future employment. benefits…
A: Solution: The vested benefits are "employee benefits that are not conditional on future employment."…
Q: The company’s pension plan is managed by Castle Fund Managers, a leading provider of pension…
A: Asset allocation means structuring a portfolio using the available asset classes by deciding their…
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 does the Pension Benefit Guaranty Corporation provides?
A: Pension: Pension refers to a cash payment given to the employees at the time of their retirement.…
Q: Many business organizations have been concerned with providing for the retirement of employees since…
A: Private Pension Plan is a fixed amount receivable by the employee at the age of retirement. Employer…
Q: Many business organizations have been concerned with providing for the retirement of employees since…
A: A private pension is a plan into which individuals contribute from their earnings, which then will…
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: Which of the following is true about plan assets? Any excess return on plan assets are earned to…
A: Plan assets refer to the form of assets that are held onto by the owner for long-term employee…
Q: At the end of 20x1, Cobble’s actuary changed the discount rate applied to the projected benefit…
A: The pension expense can be defined as the expense of a business regarding the pension of 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: Many business organizations have been concerned with providing for the retirement of employees since…
A: a) A private Pension Plan is a fixed amount receivable by the employee at the age of retirement.…
Q: Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no…
A: Answer: Events 1. N 2. N 3. D 4. I 5. I 6. D 7. I 8. I 9. N 10. I 11. D…
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: (Pension Terminology and Theory) Many business organizations have been concerned with providing for…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 35. In a defined-benefit plan, a formula is used that defines the contribution the employer is to…
A: solution concept defined-benefit plan defined-benefit plan is a plan where the benefit…
Q: a "asset gain or loss" in the context of pension accounting? What is the development of a "liability…
A: Plan assets: Assets are created, maintained and planned in a specific purpose. The contribution of…
Q: Monat Company has grown rapidly since its founding in 2004. To instill loyalty in its employees,…
A: a) FASB requires immediate identification of pension gains or losses with consistently application…
Q: If pension expense recognized in a period exceeds the current amount funded by the employer, what…
A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…
Q: The accounting staff of Riverbed Inc. has prepared the following pension worksheet. Unfortunately,…
A: A pension is a plan into which an amount of funding is deposited throughout an employee's job years…
Q: What exactly does "previous service cost" mean? When is past service cost recognized as a pension…
A: This question about describes "Previous service cost" might indicate several different things. When…
Bill Haley is learning about pension accounting. He is convinced that in years when companies record liability gains and losses, total comprehensive income will not be affected. Is Bill correct? Explain.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What does the “pension asset” represent? Are you interviewing with a company whose pension plan is severely underfunded?In our discussions on pensions, we learned about two different types of pension plans – Defined Contribution Plans and Defined Benefit Plans. Explain the differences between these plans. In your discussion, identify the impact each has on the company and the employee.The Employee Retirement Income Security Act (ERISA) requires that companies fund defined-benefit plans, but no such requirement exists for other postretirement benefits such as health insurance. Considering the characteristics of retirement benefits as compared to the characteristics of other postretirement benefits, what impact does this have on a company's financial statements?
- Your company has decided to offer company-sponsored, outsourced retirement planning to employees as a voluntary benefit. Which data set did the employer most likely use to make this decision? A. Ethical B. Compliance C. Demographic D. EconomicIn the world of pension accounting, how does a "asset gain or loss" develop? In the world of pension accounting, how does a "liability gain or loss" manifest?In a defined benefits retirement plan, the employer bears the investment risks in funding a future retirement income benefit. ____ 12. The cost of replacing an engine in a truck is an example of ordinary maintenance that should be expensed instead of capitalized. ____ 13. For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits. ____ 14. Medicare taxes are paid by both the employee and the employer. ____ 15. Costs associated with normal research and development activities should be treated as intangible assets. True and false questions....
- Accounting Which of the following statements is not correct about defined contribution plans? A. The employer controls the investment choices on the employees' behalf. B. The promise is the amount of contributions the employer will make periodically. C.The size of payments depends on success of investments. D. No explicit promise is made about the size of the periodic benefits the employee will receive during retirement.In a defined contribution plan, a formula is used that: Ensures that pension expense and the cash funding will be different Requires an employer to contribute a certain sum each period based on the formula Defines the benefits that the employee will receive at the time of retirement Ensures that the employer is at risk to make sure funds are available at retirementDunder Miflin uses defined contribution plans for their employees. A formula that is used in a defined-contribution plan Question 21 options: a) defines the benefits that the employee will receive at the time of retirement. b) ensures that employers are at risk to make sure funds are available at retirement. c) requires an employer to contribute a certain sum each period based on the formula. d) ensures that pension expense and the cash funding amount will be different.
- What benefits accrue to companies who elect to use pension funds? How does the use of a pension fund change the accounting that must be done with respect to employee pension amounts?34. In a defined-contribution plan, a formula is used that defines the benefits that the employee will receive at the time of retirement. requires an employer to contribute a certain sum each period based on the formula. ensures that employers are at risk to make sure funds are available at retirement. ensures that pension expense and the cash funding amount will be different.Xerox reports the following pension and retiree health care ("Other") footnote as part of its 10-K report. Pension Benefits Retiree Health 2010 2009 2010 2009 (in millions) Change in Benefit Obligation Benefit obligation, January 1 $9,194 $8,495 $1,102 $1,002 Service cost 178 173 B 7 Interest cost 575 508 54 60 Plan participants' contributions 11 9 26 36 Plan amendments [19) 4 (86) 1 Actuarial loss (in) 477 209 13 124 Aquistions 140 1 1 Currency exchange rate changes (154) 373 6 15 (1) Curtailments Benefits paid/settlements Benefit obligation, December 31 Change in Plan Assets Fair value of plan assets, January 1 (670) [578] (118) (143) $9,731 $9,194 $1,006 $1,102 $7,561 $6,923 $- $- Actual return on plan assets 846 720 - Employer contribution 237 122 92 107 Plan participants' contributions 11 9 26 36 Aquistions 107 - - Currency exchange rate changes (144) 349 Benefits paid/settlements (669) 15781 (118) (143) Other (9) 16 Fair value of plan assets, December 31 Net funded status at…
