Answered: Describe the reporting of pension plans…

Describe the reporting of pension plans for a companywith multiple plans, some of which are underfunded andsome of which are overfunded.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 10GI

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Describe the reporting of pension plans for a company
with multiple plans, some of which are underfunded and
some of which are overfunded.

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Which of the following is not a component of pension expense? a. amount funded b. service cost c. expected return on plan assets d. interest cost
Describe the reporting of pension plans for a company with multiple plans, some of which are underfunded and some of which are overfunded.
Describe what factors contribute to the pension benefit obligation. Discuss the effect of the increase or decrease on the PBO. How is this change reported in the financial statements and what other accounts are affected? Provide an example from a publicly-traded company.
A statement of comprehensive income for a company with a defined benefit pension plan does not include a. net income. b. the return on plan assets. c. gains from the return on assets exceeding expectations. d. losses from changes in estimates regarding the pension obligation.
p
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?
describe the components of a company’s defi ned benefi t pension costs;
The two main types of pension plans are defined benefit plans and defined contribution plans. Explain the difference between the two. How does the accounting for each differ? With defined benefit plans, there are several levels of benefit obligations for the company. List these and describe what each represents. Which does GAAP require with recognition and why?
Describe the requirements for reporting pension plans in financial statements.
look over the three most important components of the pension expense. The treatment of expected and actual return on plan assets, particularly when the actual return is greater than the expected, the amortization of prior service cost and the unexpected gain/ loss. Discuss the accounting treatment of these items with suitable examples.
In the reconciliation of the beginning and ending fair value of the plan assets, a company should disclose the actual return on its pension plan assets. the expected return on its pension plan assets. the components of the pension expense. all of these choices.
How is the pension expense influenced by changes in the pension liability and plan assets?