Employee Benefits Flashcards
Where do companies put contributions towards?
Pension Funds
Who are the liabilities in terms of Pensions?
Pensioners because the company is liable to pay the pensioners pension
How do we pay our pensioners?
Using our asset
What is defined benefit obligations?
Guaranteeing Pensioners will get paid and will get all the benefit.
What is a Current Service cost and what is the double entry for this?
If you got an employee or employees who worked for this year, they deserve more pension therefore it increases pension liability.
Dr I/S Cr Pension Liability
What is Past Service cost?
What is the double entry for this?
When Payment schemes are changing so you owe your employees more money for services ended in the past
Dr I/S Cr Pension Liability
What is the double entry for contribution?
Dr Pension Asset Cr Cash
What is the double entry for Benefit paid
Dr Pension Liability Cr Pension Asset
What is the double entry for expected return?
Dr Pension Asset Cr Interest
What is the double for Unwinding for interest
Dr Interest Cr Pension Liability
Where do recognise the Actuarial Re measurement?
OCI
What is Curtailment?
A curtailment occurs when there are a significant number of employees who leave the scheme, commonly
seen if there is a re-organisation of the business or change in scheme from defined benefit to defined
contribution
What is the asset ceiling test
and where do we treat if there are any impairment loss?
Asset Ceiling Test is when the net pension asset cannot be shown more than the recoverable amount.