The most famous global accounting body is the Financial Accounting Standards Board (FASB) which is responsible for establishing generally accepted accounting principles for public, private and not-for-profit organizations. The company acquired in this scenario tends to follow the accounting standards issued by the FASB and both the issues relating to the different post-retirement benefit plans and the elimination of segments are described below. Post-Retirement Benefit Plans The defined contribution, defined benefit and other post-retirement plans are terminologies used within International Accounting Standard 19 (IAS-19). IAS-19 lays down the accounting and disclosure requirements for employee benefits. IAS-19 is only used in firms where the company provides its employees with facilities such as gratuity, pensions, termination and many more post retirement benefits. Defined contribution is a post employment benefit plan in which the employer and the employee pay a specific amount into a separate fund (usually in insurance companies which invest that amount o behalf of the employees and the returns are handed back to the employee after he/she retires). Under the defined contribution plan, the employer restricts himself to a fixed amount and frees himself from any legal or constructive obligation to pay the employees in case of any shortfalls. Therefore, the post employment benefit received by an employee is settled upon the fixed contributions paid in by the employer. This as a result puts a burden on the employee as the actuarial and the investment risk are tolerated by the employee rather than the employer. The costs recognized within the defined contribution plan should only include the contribution payable in exchange for the service provided by the employee in that particular period. Defined benefit is also a post-employment benefit plan which is different than the defined contribution plan. Under the defined benefit plan, the burden lies with the employer to provide the agreed benefits to both the existing as well as the previous employees. Under this plan, the actuarial and the investment risk lies upon the employer whereby the employer is liable to pay up for any shortfalls that may occur. Hence it is argued that the defined benefit plan is a more expensive form of benefit plan for the employer and it is more beneficial to the employees. There are different types of benefits that are given to the employees under the defined benefit plan. If an employee works out till the retirement age as prescribed by the employer, he/she may be entitled to a pension plan; this pension plan is usually based upon the average salary that the retired employee received till his retirement. The other option available within the benefit plan is that employees also receive some benefit whereby they leave the firm before the prescribed retirement age. In these circumstances, the employee receives certain benefit based upon the length of his service within the organization. The amount recognized within the Balance Sheet for defined benefit should include the Present Value of Defined Benefit Obligation less the Fair Value of Planned Assets and this amount should be adjusted accordingly for the actuarial gains/losses and the unrecognized past service cost. Besides these two benefit plans mentioned above, termination benefit is another
Reporting Paper Name University Reporting Paper To; The Chief Executive Officer; Organizations around the globe report their operations in order to keep their stakeholders informed. The most important stakeholders include the shareholders, customers, suppliers, employees and other potential investors…
American Airlines Incorporation provides numerous benefit plans for its employees so that the talented employees can be retained in the organization for achieving the objectives of the organization. However, it has been identified that despite several competitive employee benefit programs, American Airlines Incorporation has certain lacuna in its benefit plan.
The paper tells that one of the uncertainties associated with defined contribution plans is that the employee does not know the pension benefits he or she will receive upon retirement age. The amount of benefits depends on the return the pension fund manager obtains from the investment of the money in the fund.
Creating and maintaining the link between the rewards with the organizational goals are considered an important task for the managers. By developing this relation, managers believe that the staffs will be more closely attached to their jobs and that is likely to enhance both the quantity as well as the quality of individual performances.
For instance, Britain had initially made proposals to increase the pensionable age to sixty-six by 2026 and sixty-seven by 2036 (Woodifield, 2013). However, they have made changes to set the retirement age at 66 by 2020 and 67 for the duration between 2026 and 2028 (Woodifield, 2013).
The company explores and processes petroleum products, crude oil and other natural gases. It undertakes manufacturing petroleum products and is also involved in transportation and sale of crude oil, natural gas,
The mergers and acquisitions have come up as the major step in the changing business methodology. The big companies are either acquiring smaller counterparts or are merging with the similar sized companies. It has been evident from thorough research and analysis
This report aims at discussing details of the standards and to discuss the details like measurement, presentation, and disclosure details of the standard. The paper will also include a comparison with the US GAAP and will provide a complete discussion on the
When these professionals have any beliefs, concerns or suspicions that a child is being neglected or abused, they are required by the law to report the matter to the appropriate statutory child protection authority within the jurisdiction. Otherwise, these professionals may be
Employees in the public sector benefit from the retirement plans than those in private sector. On average, more public sector workers are entitled to the retirement benefit plans compared to the private sector personnel. The coverage for the retirement benefit plan in
Government pension benefits have the benefit of providing a modest source of retirement income. However, I will be faced with the challenge of maintaining a pre-retirement lifestyle and this where personal savings and employer pension plans come in handy (Brown, Chambers &
2 pages (500 words)Essay
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