Đang chuẩn bị liên kết để tải về tài liệu:
Lecture Intermediate accounting: IFRS edition - Chapter 17: Pensions and other postemployment benefits

This chapter include objectives: Explain the fundamental differences between a defined contribution pension plan and a defined benefit pension plan; distinguish among the vested benefit obligation, the accumulated benefit obligation, and the projected benefit obligation; describe the five events that might change the balance of the PBO;. | © 2013 The McGraw-Hill Companies, Inc. Chapter 17 PENSIONS AND OTHER POSTEMPLOYMENT BENEFIT PLANS Chapter 17: Pensions and Other Postemployment Benefits Employee compensation comes in many forms. Salaries and wages, of course, provide direct and current payment for services provided. However, it’s commonplace for compensation also to include benefits payable after retirement. We discuss pension benefits and other postretirement benefits in this chapter. Accounting for pension benefits recognizes that they represent deferred compensation for current service. Accordingly, the cost of these benefits is recognized on an accrual basis during the years that employees earn the benefits. Nature of Pension Plans Pension plans provide income to individuals during their retirement years. This is accomplished by setting aside funds during an employee’s working years so that at retirement, the accumulated funds plus earnings from investing those funds are available to replace wages. Pension plans are designed to provide income to individuals during their retirement years. This is accomplished by setting aside funds during an employee’s working years so that at retirement the accumulated funds plus earnings from investing those funds are available to replace wages. The basic nature of a pension plan is that the company and/or the employees make contributions to a fund manager. The manager invests the funds and makes payments to retired employees. The amount of the contributions to the fund manager is often determined by an actuary. Corporations establish pension plans for a variety of reasons. Sponsorship of pension plans provides employees with a degree of retirement security and fulfills a moral obligation felt by many employers. This security also can induce a degree of job satisfaction and perhaps loyalty that might enhance productivity and reduce turnover. Motivation to sponsor a plan sometimes comes from union demands and often relates to being competitive in the labor . | © 2013 The McGraw-Hill Companies, Inc. Chapter 17 PENSIONS AND OTHER POSTEMPLOYMENT BENEFIT PLANS Chapter 17: Pensions and Other Postemployment Benefits Employee compensation comes in many forms. Salaries and wages, of course, provide direct and current payment for services provided. However, it’s commonplace for compensation also to include benefits payable after retirement. We discuss pension benefits and other postretirement benefits in this chapter. Accounting for pension benefits recognizes that they represent deferred compensation for current service. Accordingly, the cost of these benefits is recognized on an accrual basis during the years that employees earn the benefits. Nature of Pension Plans Pension plans provide income to individuals during their retirement years. This is accomplished by setting aside funds during an employee’s working years so that at retirement, the accumulated funds plus earnings from investing those funds are available to replace wages. Pension plans