Chapter 17 Postemployment Benefits Flashcards
all forms of consideration given by an entity in exchange for services rendered by employees or for the termination of the employment
Employee benefits
employee benefits other than termination benefits and short-term employee benefits; are payable after completion
Postemployment benefit
Both the employer and employee contribute
Contributory plan
Only the employer makes the contribution
Noncontributory plan
the transfer of assets to an entity, called the retirement fund
Funding
the entity sets aside funds for future retirement benefits by making payments to a funding agency, such as a trustee, bank or insurance company
Funded plan
the entity retains the obligation for the payment benefits without the establishment of a separate fund
Unfunded plan
a postemployment benefit plan under which an entity pays fixed contribution into a separate entity known as the fund
Defined contribution plan
contribution is definite but the benefit is indefinite
Defined contribution plan
the employee bears the investment risk in a defined contribution plan
Defined contribution plan
a postemployment plan other than a defined contribution plan
Defined benefit plan
the employee has a guaranteed specific or definite benefit
Defined benefit plan
in a defined benefit plan, the entity assumes the ______
investment risk
what is contribution holiday?
a defined contribution plan or defined benefit plan that pools the assets contributed by various entities that are not under common control and uses those assets to provide benefits to employees or more than one entity
Multiemployer plan
define SSS
define RA 7641
its accounting requires no actuarial assumptions; obligations are measured on an undiscounted basis
Define contribution plan
its accounting requires actuarial assumptions; obligations are measured on a discounted basis; may be unfunded, fully funded or partly funded
Defined benefit plan
what components of defined benefit cost are included in profit or loss as component of employee benefit expense?
service cost and net interest
what component of defined benefit cost are fully recognized through other comprehensive income?
all of the remeasurements
mathematical expert who measures the defined benefit cost
actuary
introduction of defined benefit plan or changes to an existing benefit plan
Plan amendment
a significant reduction in the number of employees covered by the defined benefit plan
Plan curtailment
