As stated in paragraph 25 of IAS 19, there are two kinds of pensions: defined contribution and defined benefit plans. In defined contribution plans, the company’s actual obligation is just the amount it agreed to place in the fund. With this plan, the employee bears the risk if the total contribution is not enough to cover the expected benefits. In defined benefit plans, the risk is borne by the employer because they have to pay the amount of the agreed upon benefits and adjust their contributions accordingly to finance these benefits. For defined contribution plans, the accounting and reporting requirements are simple. The company merely recognizes the required amount to be contributed as an expense. A liability will be recognized if the actual payment to the fund is less than the required contribution and a prepaid expense will be recognized if the actual payment to the fund is more than the required contribution. For disclosure or reporting purposes, the company is only required to disclose the expense amount and the contributions pertaining to key management personnel. For defined benefit plans, the accounting processes are much more complex. If the company utilizes defined benefit plans, its expense will be based on calculations using actuarial techniques. This is because there are various assumptions that go into the calculation process. In addition, the company’s legal obligation is not the only factor for calculating the pension expense amount, there are also constructive obligations resulting from the company’s informal practices, those that could not be changed without incurring severe damage in the relationship between the employer and the employee. The reporting for defined benefit plans is more rigorous. In general, the company will need to make adequate disclosures that will provide enough information to the financial statement users about the nature of the pension plan and any impact on the financial statements if there are changes in the plan. Specifically, the company is required to disclose its accounting policy for the recognition of actuarial gains and losses. It also needs to give a general description of the plan. It also needs to show three (3) reconciliations, as applicable, for the opening and closing balances of the present value of the obligatio
Executive Memo on Accounting for Pensions and Elimination of Segments Name University Reporting Requirements for Pension and Other Postretirement International Accounting Standard (IAS) 19, Employee Benefits, is all about the accounting for benefits employers provide to their employees…
The discrimination-and-fairness paradigm, the access-and-legitimacy paradigm and the learning-and-effectiveness paradigm are the best available methods widely used by organisations in implementing diversity programmes (Thomas and Ely 121-154). Strengths and Weaknesses of the Three Methods Managers of multinational companies have observed that implementing diversity programmes enhances the effectiveness of the organisation.
Therefore, Jan would like to know what type of information is reported in connection with separate business segments of a company. Your e-mail memo should answer the following questions:
In order for us to be successful in this endeavor, I would like to first explain my
The users of their financial statements have easy access to the business management; either by phone or e-mail. With this definition in mind, one is in a better position to understand the changed financial
However, JPM made profits amounting to $17.9 billion at the end of the financial year 2013. Although JPM spent more on its legal settlements up to $23 billion, the gains for the year 2013 were deemed productive and worthwhile. Even
They are the defined contribution and the defined benefit. The terms of defined contribution plan require the employer to make contributions to the plan as agreed but has no authority when it comes to the provision of benefits to the employees. On
However, Sarah and Jennifer do not receive and additional amount on their bonus while Stephen and Ben receive a 20% additional amount on their bonus and Mary receives a 10% additional amount on her bonus.
The difference between the total accrual and the total payout
The management has an overall positive influence on the quality of the segment information. The relevance and usefulness of the operating segment information have overweighed the expressed concerns on the comparability of the financial report (Behn, 2002).
Technological development is a sure solution to the security menace. When we embrace technology in the policing units, whether public or privatized security agencies, it is easier to assure the public of their
1 pages (250 words)Essay
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