Caribbean Hotel Services (CHS) is a small company specialising in services to the hotel industry. The company was just purchased, and the new owner was amazed to learn that there was no retirement plan for CHS workers. The new owner would like to provide adequate retirement benefits for workers and reward long-time service. The workforce consists of fourteen (14) skilled hotel housekeepers, each of whom is over age 50 and has been with the company for over twenty-five years; two (2) customer service representatives ages 40 and 55; three bellhops ages 35, 27, and 38; and a night auditor aged 54. a.Distinguish between defined benefits and defined contribution pension schemes b. Definitive position as to which plan should be adopted and why c. Disclosure requirements in the financial statements
Caribbean Hotel Services (CHS) is a small company specialising in services to the hotel
industry. The company was just purchased, and the new owner was amazed to learn that there
was no retirement plan for CHS workers. The new owner would like to provide adequate
retirement benefits for workers and reward long-time service. The workforce consists of fourteen
(14) skilled hotel housekeepers, each of whom is over age 50 and has been with the company for
over twenty-five years; two (2) customer service representatives ages 40 and 55; three bellhops
ages 35, 27, and 38; and a night auditor aged 54.
a.Distinguish between defined benefits and defined contribution pension schemes
b. Definitive position as to which plan should be adopted and why
c. Disclosure requirements in the financial statements
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