You are the senior accountant for Terrier Company and the Board of Directors is discussing the possibility of implementing a retirement plan for the employees of the company. They have asked for your guidance on whether they should move forward with creating a plan for retirement benefits, and if so, what type of plan would be beneficial to the employees while also creating the least amount of risk for the company (from an accounting and economic standpoint). Prepare a memo to the Board addressing the 3 choices they have: 1) Do not implement a plan 2) Implement a defined contribution plan 3) Implement a defined benefit plan. In your memo you should define each type of plan (DC vs. DB) and describe the pro's and con's of each of the 3 choices. Pro/con arguments should be focused on both the impact to the financial statements AND the impact to the employees of the organization (and how that could ultimately hurt or benefit the business). You should use at least 3 outside sources to support your pro/con arguments in the memo. Finally, you want to make a recommendation to the Board in your memo (be decisive and use your arguments to support your decision). Remember your audience - the Board is not interested in journal entries but more so the overall impact each choice has to the financial statements and the business in general. Memo's should be no longer than 2 pages, single spaced with appropriate headings and margins. The writing rubric (available in the grading spreadsheet in Moodle) will be used to assess this memo. Students should include a list of sources used (please make sure you are finding legitimate sources - blogs or other personal articles are not appropriate sources for this assignment).
You are the senior accountant for Terrier Company and the Board of Directors is discussing the possibility of implementing a retirement plan for the employees of the company. They have asked for your guidance on whether they should move forward with creating a plan for retirement benefits, and if so, what type of plan would be beneficial to the employees while also creating the least amount of risk for the company (from an accounting and economic standpoint). Prepare a memo to the Board addressing the 3 choices they have:
1) Do not implement a plan
2) Implement a defined contribution plan
3) Implement a defined benefit plan.
In your memo you should define each type of plan (DC vs. DB) and describe the pro’s and con’s of each of the 3 choices. Pro/con arguments should be focused on both the impact to the financial statements AND the impact to the employees of the organization (and how that could ultimately hurt or benefit the business). You should use at least 3 outside sources to support your pro/con arguments in the memo. Finally, you want to make a recommendation to the Board in your memo (be decisive and use your arguments to support your decision).
Remember your audience – the Board is not interested in
Memo's should be no longer than 2 pages, single spaced with appropriate headings and margins. The writing rubric (available in the grading spreadsheet in Moodle) will be used to assess this memo. Students should include a list of sources used (please make sure you are finding legitimate sources - blogs or other personal articles are not appropriate sources for this assignment).
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