lease answer the following questions about defined benefit pension plans: Companies with defined benefit pension plans must recognize pension expenses each period. What are the five components of pension expense? Briefly describe each component. How does each component of pension expense affect pension expense during the period (increase, decrease, or uncertain)? What is the difference between the accumulated pension obligation and the projected pension obligation? What determines whether a pension plan is underfunded or overfunded?

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: Interest cost included in pension expense recognized for a period by an employer sponsoring a…

A: Pension expense refers to the cost incurred by a company for providing retirement benefits to its…

Q: Why did the FASB's prior pension accounting guidelines not encompass both pensions and healthcare as…

A: This question tells about  the FASB's prior pension accounting guidelines not encompass both…

Q: Which component of Kensington’s periodic pension cost would be shown in OCI ratherthan P&L?A .…

A:

Q: What benefits accrue to companies who elect to use pension funds? How does the use of a pension fund…

A: A Pension plan is a type of retirement plan that requires an employer to contribute to a pool of…

Q: Describe how pension expense is a composite of periodic changes that occur in both the pension…

A: Pension plan: It is the plan devised by corporations to pay the employees an income after their…

Q: If employee's are paying into a SIMPLE retirement plan, each payperiod how is the SIMPLE plan's…

A: Simple Retirement Plan- A Savings Incentive Match Plan for Employees of Small Employers (simple) is…

Q: The three types of formulas used to determine pension benefits for defined benefit pension funds are…

A: According to the retirement plans of the employer, each employee has to set apart certain amount…

Q: Which of the following qualified plans is a defined benefit plan? Defined benefit pension plan…

A: A defined benefit plan, more commonly known as a pension plan, offers guaranteed retirement benefits…

Q: Alternative methods exist for the measurement of the pension obligation (liability). Which measure…

A: Answer: The pension obligation is liability and it is to be paid once the employees retire.

Q: Which type of pension plan would you prefer to be covered under (i.e., defined benefit, defined…

A: In this there are many types of pension plans available and each have own characteristics.

Q: Depending on when an unfunded pension liability is to be paid, it will be classified on the balance…

A: Yes, unfunded pension liability will be classified as a liability on the BS Balance Sheet It is…

Q: Luciana Fashions calculated pension expense for its underfunded pension plan as follows: ($ in…

A: Financial statements are those statements which are prepared at the end of accounting period. The…

Q: Compute pension expense for Howard Corp. for the year 2020 by preparing a pension worksheet.…

A: PLEASE GIVE A LIKE, your response matters  Journal:  Journal ENTRY is considered as a book of…

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: Net interest cost is a component of pension expense under IFRS. How is net interest cost calcul…

A: Net Interest cost is calculated by taking the difference between interest expense on defined benefit…

Q: How should gains or losses related to pension plan assets be recognized? How does this treatment…

A:

Q: Describe what factors contribute to the pension benefit obligation. Discuss the effect of the…

A: A projected benefit obligation (PBO) is an actuarial calculation of how much money a firm will…

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: 1. Which of the following statements typifies defined contribution plans? Investment risk is borne…

A: A defined contribution plan is a type of retirement plan in which the employer, and sometimes the…

Q: What are the four basic components of pension expense? Select one: A. Service cost, benefits paid,…

A: Answer -  To calculate a pension expense of a particular Employee working under him, the employer…

Q: All of the following are events that can change the projected benefit obligation (PBO) during a…

A: The PBO is the present value of future retirement benefit payouts. A higher PBO represents a higher…

Q: The return on plan assets is the increase in plan assets (at fair value), adjusted for contributions…

A: Return on plan assets is calculated as Plan assets * Expected Return

Q: In computing the interest component of pension expense, what interest rates may be used?

A: Pension expense: Pension expense is an expense to the employer paid as compensation after the…

Q: Xerox reports the following pension and retiree health care ("Other") footnote as part of its 10-K…

A: (a) Service cost is the value of additional pension benefits employees earn in a year, paid in the…

Q: Assume that actual returns and expected returns to plan assets in a defined benefit pension plan are…

A: Introduction: Under a defined benefit plan, amount of pension income that the employee will receive…

Q: Current accounting standards require that the discount rate used for pension plans be:   Multiple…

A: As per IAS 19 discount rate used for pension plans be considered as following

Q: What factors determine whether a pension plan is adequately capitalized or excessively capitalized?

A: A pension plan functions as a savings system for the retirement. If individual is employed, both…

Q: describe the two elements which determine the net periodic pension expense.

A:

Q: (Basic Terminology) In examining the costs of pension plans, Helen Kaufman, CPA, encounters certain…

A: a. 1 The service tenure of the employee is matched with the addition of benefits to the pension…

Q: panies fund defined-benefit plans, but no such requirement exists for other pos

A: The Employee Retirement Income Security Act of 1974 (ERISA) may be a federal law that sets minimum…

Q: If an employer has a defined benefit pension plan, what components would make up its net periodic…

A: Defined benefit pension plans have a specific and a determinable benefit, which can take the form of…

Q: What is meant by past service cost? When is past service cost recognized as pension expense?

A: Service cost refers to the cost which is used through actuaries of the firm in order to determine…

Q: (Computation of Pension Expense) Veldre Company provides the following information about its defined…

A: The net periodic pension costs include: 1. Current service cost 2. Past service cost 3. Interest…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.