Chapter 17, Problem 17.3BYP

(1)

To determine

Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.

Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.

To discuss: Whether the pension expense is computed based on the amounts that are not reported on the balance sheet.

(2)

To determine

To mention: The amounts that would be reported as net pension liability on the balance sheet.

(3)

To determine

To mention: The amounts that would be reported as net pension asset on the balance sheet.

(4)

To determine

To indicate: The other items which were reported on disclosure notes were reported on balance sheet.

(5)

To determine

To discuss: The item reported as ‘actuarial gain’ and ‘actuarial losses in the notes to financial statements.

(6)

To determine

To indicate: The components of pension expense which represent deferred recognition, and indicate where these items would be reported before being amortized.