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FAR Chapter 13

Terms in this set (29)

Defined Contribution, Defined Benefit
2 types of pension plans under GAAP
Defined Contribution
GAAP pension plan when the employer sets aside specific amounts during the time of service, and the retired employee receives whatever sum these contributions and earnings produce
Defined Benefit
GAAP pension plan when the employer guarantees certain benefits to be paid to retired employees, and is responsible for setting aside sufficient amounts to fulfill these primises
Pension Expense, Accrued Pension Cost
Under the defined contribution plan, during an employees working period, ___ ___ is debited monthly and ___ ___ ___ is credited
Accrued Pension Cost, Cash
Under the defined contribution plan, while an employee is retired, ___ ___ ___ is debited monthly and ___ is credited
Actuary
person used to compute pension obligations
Vested Pension Obligation
what is owed if an employee is terminated immediately; PV of benefits the employee is entitled to
Accumulated Benefit Obligation
What is owed for service to date if the employee continues in employment until normal retirement age at current wage rates
Project Benefit Obligation
What is owed for service to date if the employee continues in employment until normal retirement age and receives periodic adjustments to pay for increased experience and general inflation based on ftuure wage rates
Flat Benefit (non play related) plans
Pension plans where benefits earned are not affected by changes in rates
Service Cost
Part of pension expense; actuarial PV of benefits attributed to services performed during the period; increase in PBO for 1 year; the increase in PBO resulting from employee service in the current period
Prior Service Cost Amortization
Part of pension expense; cost associated with service years before the plan was implemented;
Calculation = Beg PSC/ Avg. service life or expected future years of service; PBO resulting from establishing a plan that gives credit for work performed before the date of plan adoption; amortized over the average service time
Interest Cost
Part of pension expense; change in PBO resulting from passage of time
Calculation = Beginning PBO x Discount rate
Plan Assets
Actual Return on ___ ___; Part of pension expense; Actual earnings of pension plan during the period
Calculation = Ending PA - Beg. PA - Contribution Made + Benefits -or-
Beg FV of plan assets x actual return
Deferred Gain
Part of Pension Expense; actual investment results differ from long run expected returns; return on PA - Beg P Expected Rate of Return
Excess Amortization
Part of Pension Expense; Unrecognized gains and losses included in accumulated OCI
Noncurrent Asset
If a pension plan is overfunded, a ___ ___ is recorded on the balancesheet
Noncurrent Liability
If a pension plan is underfunded, a ___ ___ is recorded on the balance sheet
Accumulated Other Comprehensive Income
Gains and losses not already recognized as pension expense are recognized in ___ ___ ___
Projected Benefit Obligation
For a defined benefit pension plan, the service cost is measured using the ___ ___ ___
Projected Benefit Obligation, Passage of Time
Interest cost on a defined benefit pension plan represents the increase in the ___ ___ ___ due to the ___ ___ ___
Description, Pension Expense, Component, Weighted Average Discount, Future Contributions
An entity with a defined benefit pension plan is required to disclose a ___ of the plan, the amount of ___ ___ by ___, the ___ ___ ___ rate, ad the estimate of ___ ___ for the next fiscal period
Short Term, Post Employment, Termination, Other
4 types of employee benefits under IFRS
Short Term Benefits
IFRS: employee benefits povided to current employees and expected to be settled within one year of the end of period; salary and wages, vacation and sick pay, profit sharing and bonuses, medical coverage, discounted goods, etc.
Post Employment Benefits
IFRS: Employee benefits other than termination benefits that occur after employment; pensions, lump sum retirement payments, medical care, life insurance, etc
Termination Benefits
IFRS: Employee benefits provided to employees resulting from termination of the employee before the normal retirement date
Undiscounted, Earned
IFRS: Short term employee benefits are recognized at their ___ amounts in the period in which they are ___
Liability, Withdraw, Restructuring
IFRS: Termination benefits are reported as a ___ at the earlier of either the date on which the entity can no longer ___ the offer or the date on which the entity recognizes the costs of ___
Projected Unit Credit
IFRS requires that PBO and service cost be determined using the ___ ___ ___ method
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