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Question 1

is unrecog’d PSC divided by avg. svc life?

Answer 1

yes, must be the average

Question 2

what does svc. cost represent?

Answer 2

it rep’s the increase in PBO

Question 3

what is the diff b/w ABO and PBO?

Answer 3

• ABO = based on PY and CY

- PBO = based on FY

Question 4

what does interest cost included in net per pen cost represent?

Answer 4

it rep’s the increase in PBO due to passage of time

Question 5

what is the JE for contr. to pension plan?

Answer 5

Dr: pen plan A/L
Cr: cash

Question 6

what are the class’n’s of pen plan A/L?

Answer 6

*pension plan A = non-current
(overfunded)

*pension plan L = current/non-current/both
(underfunded)

Question 7

what are the off-BS footnote disclosures for pension plans and post-retirement ben’s?

Answer 7

• reconc. of BB and EB of FV plan A and PBO
• funded status (current/non)
• plan A’s (policies/strat)
• comp’s of net per pen cost
• ben pmt + contr
• impact on OCI
• rates and assumpt’s
• employer and related trans
• amort. methods (for AGE)
• assumpt’s + commitments
• termination ben’s
• discl. req’s for nonpublics

Question 8

under IFRS, how are remeasurements of actuarial G/L and of net defined ben A/L be reported?

Answer 8

they go to OCI and are not reclass’d (amort’d) to I/S

Question 9

where should the funded status of a DBPP be reported?

Answer 9

in the statement of fin. position (BS)

• it is also explained, but not reported, in the notes

Question 10

what is the disclosure for a company with multiple DBPP’s?

Answer 10

calculate and report separately, do not net

Question 11

what are the accrual req’s for retirement ben’s other than pensions?

Answer 11

• svc’s already rendered
• emp’s rights accu/vest
• pmt is probable
• amt of ben’s are reas. est’d

Question 12

what is APBO?

Answer 12

PV of future ben’s that have vested as of meas. date

Question 13

what is EPBO?

Answer 13

PV of all future ben’s expected to be paid as of the meas. date

*EPBO is accrued during attribution period (emp’s date of hire til full eligibility date)

…NOT when retired/paid

Question 14

how is SIR AGE diff. in postretirement ben. obl?

Answer 14

only for “E” and 2 diff’s:

(1) option to exp. entire obl. in 1 year as change in AP
(2) APBO

-------------------
= initial unfunded obl.
/ greater of 20Y or remaining svc life
---------------------------------
= min, amort (or exp full)

Question 15

what is the additional disclosure in APBO?

Answer 15

the effect on APBO “S” and I” cost of +/- 1% in HC cost trend rate

Question 16

what are the req’d FS’s for DBPP’s?

Answer 16

• statement of NA avail. for ben’s (BS - A’s)

… bottom lime = NA avail for ben’s

• statement of changes in NA avail. for ben’s (IS)

…bottom lime = EB NA avail. for ben’s

• statement of accu’d plan ben’s (BS - L’s)

…has vested + nonvested ben’s

• statement of changes in accu’d plan ben’s
  (L changes)

.. has change in actuarial assumpt’s

Question 17

what are the req’d FS’s for DCPP’s?

Answer 17

• statement of NA avail. for ben’s (BS - A’s)

- statement of changes in NA avail. for ben’s (IS)

Question 18

what MAY be prepared but not req’d to for both DBPP and DCPP’s?

Answer 18

statement of CF’s

Question 19

is the effect of appreciation of plan’s investments on plan’s actuarial PV of plan ben’s reported on DBPP statement of changes in accu’d plan ben’s?

Answer 19

no, it is not reported

*should report effect of changes in actuarial assumpt’s on plan’s actuarial PV of plan ben’s

Question 20

what is legal capital?

Answer 20

amt of capital that must be retained to protect creditors

*par/stated value of PS and CS are legal capital and known as “capital” stock