Karteikarten
RSM320- Pensions
Karten in diesem Stapel (21)
- 1What is the difference bw defined contribution and defined benefit plansBenefit: The payout is defined
Contributory: The contribution is defined - 2Define vestingWhen the rights of the benefits belong to employees: regardless of employment status
- 3Journal entry: employer annual contribution to defined contribution planDR: Pension Expense
CR: Cash - 4How do IFRS/ASPE account for past service costs?IFRS: expensed immediately
ASPE: costs amortized using systematic method - 5Three main components of defined benefit pension plans1. employer's obligation
2. Plan Assets
3. pension expense - 6What do current accounting standards require in the inclusion of employer's obligation?1. Vested benefits
2. Unvested benefits
3. Future salary - 7What is the formula for ABO: accrued benefit obligation?Accrued benefit obligation (end of period) =
Accrued benefit obligation, beginning of period
+ Current service cost
+ Interest cost
- Benefits paid to retirees
+/- Past service costs or benefits relating to amendments
+/- Actuarial gains or losses during the period - 8What is the formula for plan assets?Fair value of plan assets (end of period) =
Fair value of plan assets, beginning of period
+ Contributions from employer and possibly employees
+/- Actual return on assets
- Benefits paid to retirees - 9Differentiate between funded plan and unfunded planFunded: ABOplan assets
- 10Pension Benefit Cost formulaAnnual pension benefit cost =
+ Current service cost
+ Interest cost
+/- Past service costs or benefits relating to amendments
+/- Actuarial gains or losses during the period
+/- Actual return on assets - 11Name the three approaches for Pension Benefit Cost1.Immediate Recognition Approach
2. Deferred/Amortized Approach
3. IAS 19 Amendment Approach - 12Outline the Immediate Recognition Approach-all components of PBO recognized immediately
- ABO valued with actuary, used for funding purposes - 13Deferral and Amortization Approach-past service costs generally deferred amortized
-actuarial gains/losses deferred/amortized w corridor approach
-ABO based on actuary valuation for accounting purposes - 14How is the corridor approach used?10% of the higher of:
-beg year ABO
-FV Plan Assets
If unrec. actuarial g/l greater than corridor, excess is amortized - 15New Amendments,components of defined benefit cost recognized in:Components of the defined benefit cost recognized either in NI or OCI
(a) Service Costs, current and past—in NI
(b) Net Interest on NPA/L—in NI
(c) UEG&L Remeasurement in OCI. - 16In the amended method, what is the main diff between IFRS and ASPE?ASPE: losses go through expense (NI)
IFRS: losses go through OCI - 17What are the most important things to focus on in disclosure of pensions1. the major assumptions that underlie
the calculations,
2. the surplus or deficit of the plan, and
3. the company’s future cash requirements. - 18Pension disclosure requirements scope for IFRS vs ASPEASPE: only requires basic info disclosed, w remeasurements in notes if not in separate IS
IFRS: extensive disclosures required - 19Four key changes between IAS19 and Deferr/Amort approach1. Past Service Costs are now rec immediately
2. All remeasurements and losses in OCI, no corridor approach
3. Interest charge calculated using funded status of plan (ABO-PA)*rate
4. Return on Assets: a) interest=PA*rate, b)diff b/w actual return and interest on PA =re measurement to OCI - 20DBRA definition of pension plans in good shapemore than 80% funded
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Informationen
- Beschreibung
- Karteikarten am RSM320- Pensions, erstellt von A H am 18/12/2017.
- Erstellt von
- A H
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