Thursday, February 21, 2013

Pension Plans

|Manufacturing Company A | |Memo


From:Jon Rhoads, Controller

Date:October 26, 2009

Re:Company Acquisition

after(prenominal) the acquisition of Company B, the company result have ii additional different tribute aims and deuce additional segments to base on. This will substanti in ally increase the complexity of the company’s fiscal reporting. The reporting of a defined contribution pension design, the reporting of a defined benefit pension externalize and other postretirement pension externalises were reviewed and presented here. The steps necessary to eliminate the two segments of Company B have also been presented.

Defined contribution pension plans provides various(prenominal) accounts for each plan participant and specifies how contributions to the individual’s account are to be determined sort of than specifies the amount of benefits the individual is to receive. The benefits a plan participant will receive depend solely on the amount contributed to the plan participant’s account, the returns earned on investments of those contributions, and the forfeitures of other plan participants’ benefits that may be allocated to that plan participants account (FASB Codification 715-70-20).

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The first objective of a defined contributions plan’s financial statements is to provide information that is useful in assessing the plan’s present and future ability to pay benefits (AICPA, 2009). The financial statements of a defined contribution plan prepared in compliance with generally accepted accounting principles (GAAP) shall be prepared on the accrual basis of accounting and include both of the future(a) (FASB Codification 962-205-45-1):

A statement of net assets available for benefits of the plan as of the end of the plan year should present amounts for all of the following (FASB codification 962-205-45-2)

1. Total assets

2. Total liabilities...If you want to strike a full essay, order it on our website: Orderessay

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