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A description of the plan, including employee groups covered, type of benefit formula, funding policy, types of assets held, significant matters affecting comparability or information for all periods presented, 2. The amount of net periodic pension cost for the period showing separately the service cost component, the interest cost component, the actual return on assets for the period, and the net total of other components, 3. A schedule reconciling the funded status of the plan with amounts reported in the employer’s statement of financial position” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011).
APB Opinion No. 8 states that there are some basic problems with the accounting for the defined benefit pension plan. The problems identified are: “1. Measuring the total amount of cost associated with a pension plan, 2. Allocating the total pension costs to the proper accounting periods, 3. Providing the cash to fund the pension plan, and 4. Disclosing the significant aspects of the pension plan on the financial statements” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," …show more content…
106 “Employers’ Accounting for Postretirement Benefits Other than Pensions.” SFAS No. 106 deals with other postretirement benefits other than pensions which includes a variety: tuition assistance, day care, legal services, and housing subsidies, the most significant are retiree health care services, and life insurance. “Although on the surface OPRBs are similar to defined benefit pension plans that have characteristics that necessitate different accounting considerations and that have been the source of considerable controversy: future cash outlays for OPRBs depend on the amount of serves that the employees will eventually receive, additional OPRBs cannot be accumulated by employees OPRB with each year of service, OPRBs do not vest” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits,"
APB Opinion No. 8 states that there are some basic problems with the accounting for the defined benefit pension plan. The problems identified are: “1. Measuring the total amount of cost associated with a pension plan, 2. Allocating the total pension costs to the proper accounting periods, 3. Providing the cash to fund the pension plan, and 4. Disclosing the significant aspects of the pension plan on the financial statements” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," …show more content…
106 “Employers’ Accounting for Postretirement Benefits Other than Pensions.” SFAS No. 106 deals with other postretirement benefits other than pensions which includes a variety: tuition assistance, day care, legal services, and housing subsidies, the most significant are retiree health care services, and life insurance. “Although on the surface OPRBs are similar to defined benefit pension plans that have characteristics that necessitate different accounting considerations and that have been the source of considerable controversy: future cash outlays for OPRBs depend on the amount of serves that the employees will eventually receive, additional OPRBs cannot be accumulated by employees OPRB with each year of service, OPRBs do not vest” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits,"