1E EE Benefit Plans

Question 1

ASC 960

Answer 1

Plan Accounting - Defined Benefit Pension Plans

Question 2

ASC 962

Answer 2

Plan Accounting for Defined Contribution Pension Plans

Question 3

Financial statements of Employee Benefit Plans

Answer 3

1. Statement of net assets available for benefits

2. Statement of changes in net assets available for benefits

Question 4

Cash Flows are not required for benefit plans but could be provided, if relevant

Answer 4

True

Question 5

Benefit plan disclosures

Answer 5

1. actuarial present value of accumulated plan benefits

2. effects, if significant, of factors affecting year to year change of plan benefits.

Question 6

Statement of the Net Assets Available for Benefits (balance sheet)

ERISA requires that this statement be presented in comparative form.

Answer 6

ASSETS
Fair value of investments
Employer contributions receivable
Participant contributions receivable
Notes receivable from participants
Cash
TOTAL ASSETS

LIABILITIES
Accrued expenses
Accounts Payable
Excess contributions payable
TOTAL LIABILITIES

NET ASSETS AVAILABLE FOR BENEFITS

Question 7

Statement of Changes in Net Assets Available for Benefits (Income statement)

Answer 7

ADDITIONS
Net appreciation in fair value of investments
Interest & dividends earned on investments

Interest income on notes receivable from participants
Contributions:
     Employer contributions
     Participant contributions
TOTAL ADDITIONS

DEDUCTIONS
Benefits paid to participants
Administrative expenses
TOTAL DEDUCTIONS

Net increase/(decrease) in net assets
Net assets available for benefits, beginning
Net assets available for benefits, ending

Question 8

Statement of Accumulated Plan Benefits

could be combined with statement of changes in net assets or in the notes to the financial statements

Answer 8

Actuarial present value of accumulated plan benefits
Vested benefits
Participants current receiving payments
Other participants

  Non-vested benefits Total actuarial present value of accumulation plan benefits.