Chapter 7 Pension Flashcards
What is Curtailment
Occurs when there is a significant reduction in the number of employees covered by a defined benefit plan
Where are all the gains and losses related to pension recorded
Income statement
The re measurement gains and losses are recorded in ?
Other comprehensive income
Who is an actuary
They are the ones who make estimates on the pension contribution and payments that the firm will have to make to make.
On what basis do the actuaries make the assumptions of payment on
Investment returns, wage inflation and life expectancy
What is asset ceiliing
As per ias 19 the limit to which asset can be recognised,
It is the lower of
Amount calculated as pension asset
The total present value of benefits available in the form of refunds from the plan or reduction in future contribution to the pension plan
Which type of pension plan put the employer in an on going obligation, in which they have to record a non current liability whenever there is a pension deficit at the year end
Defined benefit plan
In which plan does the employee bear all the risk of the value of the pension fluctuation
Defined contribution plan
