Chapter 20 - Accounting for pensions and postretirement benefits. After completing this chapter you should be able to: Distinguish between accounting for the employer’s pension plan and accounting for the pension fund, identify types of pension plans and their characteristics, explain alternative measures for valuing the pension obligation, list the components of pension other contents. | Volume 2 C H A P T E R 20 ACCOUNTING FOR PENSIONS AND POSTRETIREMENT BENEFITS Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Distinguish between accounting for the employer’s pension plan and accounting for the pension fund. Identify types of pension plans and their characteristics. Explain alternative measures for valuing the pension obligation. List the components of pension expense. Use a worksheet for employer’s pension plan entries. Describe the amortization of past service costs. Explain the accounting for unexpected gains and losses. Explain the corridor approach to amortizing gains and losses. Describe the requirements for reporting pension plans in financial statements. Explain special issues related to postretirement benefit plans. Learning Objectives Alternative measures of liability Components of pension expense Nature of Pension Plans Accounting for Pensions Using a Pension Worksheet Reporting Pension Plans in Financial Statements Defined contribution plan Defined-benefit plan Role of actuaries 2011 entries and worksheet Amortization of past service cost 2012 entries and worksheet Gain or loss 2013 entries and worksheet Recognition of actuarial gains and losses Within the financial statements Within the notes to the financial statements 2013 entries and worksheet—a comprehensive example Special issues Accounting for Pensions and Postretirement Benefits An arrangement whereby an employer provides benefits to employees after they retire for services they provided while they were working. Pension Plan Administrator Contributions Employer Retired Employees Benefit Payments Assets & Liabilities LO 1 Distinguish between accounting for the employer’s pension plan and accounting for the pension fund. Nature of Pension Plans Pension plans can be: LO 1 Distinguish between accounting for the employer’s pension plan and accounting for the pension fund. Contributory: employees . | Volume 2 C H A P T E R 20 ACCOUNTING FOR PENSIONS AND POSTRETIREMENT BENEFITS Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Distinguish between accounting for the employer’s pension plan and accounting for the pension fund. Identify types of pension plans and their characteristics. Explain alternative measures for valuing the pension obligation. List the components of pension expense. Use a worksheet for employer’s pension plan entries. Describe the amortization of past service costs. Explain the accounting for unexpected gains and losses. Explain the corridor approach to amortizing gains and losses. Describe the requirements for reporting pension plans in financial statements. Explain special issues related to postretirement benefit plans. Learning Objectives Alternative measures of liability Components of pension expense Nature of Pension Plans Accounting for Pensions Using a Pension Worksheet .
