FAR2C18 C Flashcards
State all content information.
How are obligations measured in a defined contribution plan?
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Part 1 only
1) How are obligations measured in a defined contribution plan?
2) What are the three (3) accounting procedures for defined contribution plan?
3) What are the two (2) disclosures required for defined contribution plan?
4) What are the complexities involved in accounting for a defined benefit plan?
5) What are the three (3) possible funding statuses of a defined benefit plan?
6) Is the expense recognized under a defined benefit plan always the same as the contribution for the period?
7) What are the three (3) components of defined benefit cost under PAS 19R?
State all content information.
How are obligations measured in a defined contribution plan?
7
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Part 1 only
1) How are obligations — in a defined — plan?
2) What are the three (3) — —- for defined contribution plan?
3) What are the two (2) — — for defined contribution plan?
4) What are the — involved in — for a defined benefit plan?
5) What are the three (3) possible —- —- of a defined benefit plan?
6) Is the expense recognized under a defined benefit plan always the — as the — for the period?
7) What are the three (3) — of defined benefit cost under PAS —?
1) How are obligations measured in a defined contribution plan?
2) What are the three (3) accounting procedures for defined contribution plan?
3) What are the two (2) disclosures required for defined contribution plan?
4) What are the complexities involved in accounting for a defined benefit plan?
5) What are the three (3) possible funding statuses of a defined benefit plan?
6) Is the expense recognized under a defined benefit plan always the same as the contribution for the period?
7) What are the three (3) components of defined benefit cost under PAS 19R?
State all content information.
How are obligations measured in a defined contribution plan?
7
8
5
Part 2 only
1) What are the three (3) components of service cost under a defined benefit plan?
2) What are the three (3) components of net interest under a defined benefit plan?
3) What are the three (3) components of remeasurements under a defined benefit plan?
4) How are service cost and net interest recognized under a defined benefit plan?
5) How are remeasurements recognized under a defined benefit plan?
6) Can remeasurements under a defined benefit plan be transferred within equity?
7) Who usually measures the defined benefit cost, and is it required by PAS 19R to involve them?
8) What actuarial valuation method is required for determining the present value of the defined benefit obligation under a defined benefit plan?
State all content information.
How are obligations measured in a defined contribution plan?
7
8
5
Part 2 only
1) What are the three (3) — of — cost under a defined benefit plan?
2) What are the three (3) — of — — under a defined benefit plan?
3) What are the three (3) — of — under a defined benefit plan?
4) How are — — and — — recognized under a defined benefit plan?
5) How are —- —- under a defined benefit plan?
6) Can — under a defined benefit plan be — within —?
7) Who — — the defined benefit cost, and is it — by PAS 19R to involve them?
8) What actuarial — — is required for determining the — value of the defined benefit obligation under a defined benefit plan?
1) What are the three (3) components of service cost under a defined benefit plan?
2) What are the three (3) components of net interest under a defined benefit plan?
3) What are the three (3) components of remeasurements under a defined benefit plan?
4) How are service cost and net interest recognized under a defined benefit plan?
5) How are remeasurements recognized under a defined benefit plan?
6) Can remeasurements under a defined benefit plan be transferred within equity?
7) Who usually measures the defined benefit cost, and is it required by PAS 19R to involve them?
8) What actuarial valuation method is required for determining the present value of the defined benefit obligation under a defined benefit plan?
State all content information.
How are obligations measured in a defined contribution plan?
7
8
5
Part 3 only
1) What does the projected unit credit method recognize in determining the present value of the defined benefit obligation?
2) What is current service cost?
3) What is net interest in the context of defined benefit plans?
4) What is past service cost?
5) What constitutes a plan amendment?
State all content information.
How are obligations measured in a defined contribution plan?
7
8
5
Part 3 only
1) What does the — — — method recognize in determining the present value of the defined benefit obligation?
2) What is — — —?
3) What is — — in the — of defined benefit plans?
4) What is — — —?
5) What — a — —?
1) What does the projected unit credit method recognize in determining the present value of the defined benefit obligation?
2) What is current service cost?
3) What is net interest in the context of defined benefit plans?
4) What is past service cost?
5) What constitutes a plan amendment?
State all content information.
How are obligations measured in a defined contribution plan?
7
8
5
1) How are obligations measured in a defined contribution plan?
2) What are the three (3) accounting procedures for defined contribution plan?
3) What are the two (2) disclosures required for defined contribution plan?
4) What are the complexities involved in accounting for a defined benefit plan?
5) What are the three (3) possible funding statuses of a defined benefit plan?
6) Is the expense recognized under a defined benefit plan always the same as the contribution for the period?
7) What are the three (3) components of defined benefit cost under PAS 19R?
1) What are the three (3) components of service cost under a defined benefit plan?
2) What are the three (3) components of net interest under a defined benefit plan?
3) What are the three (3) components of remeasurements under a defined benefit plan?
4) How are service cost and net interest recognized under a defined benefit plan?
5) How are remeasurements recognized under a defined benefit plan?
6) Can remeasurements under a defined benefit plan be transferred within equity?
7) Who usually measures the defined benefit cost, and is it required by PAS 19R to involve them?
8) What actuarial valuation method is required for determining the present value of the defined benefit obligation under a defined benefit plan?
1) What does the projected unit credit method recognize in determining the present value of the defined benefit obligation?
2) What is current service cost?
3) What is net interest in the context of defined benefit plans?
4) What is past service cost?
5) What constitutes a plan amendment?
How are obligations measured in a defined contribution plan?
Obligations are measured on an undiscounted basis, except when they are not expected to be settled wholly within twelve months after the end of the period.
What are the three (3) accounting procedures for defined contribution plan?
1) The contribution shall be recognized as expense in the period it is payable.
2) Any unpaid contribution at the end of the period shall be recognized as accrued expense.
3) Any excess contribution shall be recognized as prepaid expense but only to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
What are the three (3) accounting procedures for defined contribution plan?
1) The — shall be recognized as — in the period it is —.
2) Any — contribution at the — of the period shall be recognized as — expense.
3) Any — contribution shall be recognized as — expense but only to the extent that the prepayment will lead to a — in future payments or a cash refund.
1) The contribution shall be recognized as expense in the period it is payable.
2) Any unpaid contribution at the end of the period shall be recognized as accrued expense.
3) Any excess contribution shall be recognized as prepaid expense but only to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
What are the two (2) disclosures required for defined contribution plan?
1) The amount recognized as expense for the defined contribution plan.
2) The contribution to defined contribution plan for key management personnel as required by PAS 24 on related party disclosures.
What are the complexities involved in accounting for a defined benefit plan?
- Actuarial assumptions are required to measure the obligation and the expense.
- There is a possibility of actuarial gains and losses.
- The obligation is measured on a discounted basis.
What are the three (3) possible funding statuses of a defined benefit plan?
- Unfunded
- Fully funded
- Partly funded by the contributions of the entity
Is the expense recognized under a defined benefit plan always the same as the contribution for the period?
No, the expense recognized is not necessarily the amount of contribution for the period.
What are the three (3) components of defined benefit cost under PAS 19R?
- Service cost
- Net interest
- Remeasurements
What are the three (3) components of service cost under a defined benefit plan?
- Current service cost
- Past service cost
- Any gain or loss on settlement
What are the three (3) components of net interest under a defined benefit plan?
- Interest expense on defined benefit liability
- Interest income on plan assets
- Interest expense on the effect of asset ceiling
What are the three (3) components of remeasurements under a defined benefit plan?
- Actuarial gain and loss
- Actual return on plan assets less interest income on plan assets
- Any change in the effect of the asset ceiling minus interest on the effect of asset ceiling
How are service cost and net interest recognized under a defined benefit plan?
They are included in profit or loss as components of employee benefit expense.
How are remeasurements recognized under a defined benefit plan?
Remeasurements are fully recognized through other comprehensive income and are not recycled or reclassified subsequently to profit or loss.
Can remeasurements under a defined benefit plan be transferred within equity?
Yes, according to PAS 19R paragraph 122, remeasurements may be transferred within equity or reclassified to retained earnings.
Who usually measures the defined benefit cost, and is it required by PAS 19R to involve them?
The measurement of defined benefit cost is usually done by an actuary. PAS 19R encourages but does not require an entity to involve a qualified actuary in the measurement of the defined benefit obligation.
What actuarial valuation method is required for determining the present value of the defined benefit obligation under a defined benefit plan?
The projected unit credit method, also known as the accrued benefit method.
What does the projected unit credit method recognize in determining the present value of the defined benefit obligation?
It sees each period of service as giving rise to an additional unit of benefit entitlement, and each unit is measured separately to build up the final obligation.
What is current service cost?
It is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. It represents the cost to an entity under a defined benefit plan for the service rendered by employees in the current year, leading to an increase in both the expense and the defined benefit obligation.
What is current service cost?
It is the — in the — — of the defined benefit obligation resulting from employee service in the current period. It represents the — to an entity under a defined — plan for the — rendered by employees in the current year, leading to an — in both the — and the defined — obligation.
It is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. It represents the cost to an entity under a defined benefit plan for the service rendered by employees in the current year, leading to an increase in both the expense and the defined benefit obligation.
It is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. It represents the cost to an entity under a defined benefit plan for the service rendered by employees in the current year, leading to an increase in both the expense and the defined benefit obligation.
Current service cost
What is net interest in the context of defined benefit plans?
It is the change in the defined benefit obligation and plan assets due to the passage of time. It consists of three elements:
- Interest expense on defined benefit liability: Calculated by multiplying the defined benefit obligation at the beginning of the reporting period by the discount rate.
- Interest income: Calculated by multiplying the fair value of plan assets at the beginning of the reporting period by the same discount rate.
- Interest expense on effect of asset ceiling: Calculated by multiplying the effect of the asset ceiling at the beginning of the reporting period by the same discount rate.
In summary, net interest is the difference between the interest expense on the defined benefit obligation, the interest income on plan assets, and the interest expense on the effect of the asset ceiling.
What is net interest in the context of defined benefit plans?
It is the — in the defined benefit — and — assets due to the passage of time. It consists of three elements:
- — — on defined benefit —: Calculated by — the defined benefit — at the beginning of the reporting period by the — rate.
- — —: Calculated by multiplying the — value of plan assets at the — of the reporting period by the same — rate.
- — — on effect of asset —: Calculated by multiplying the — of the asset ceiling at the — of the reporting period by the same — rate.
In summary, It is the — between the — expense on the defined benefit —, the interest — on — —, and the — expense on the — of the asset —-.
It is the change in the defined benefit obligation and plan assets due to the passage of time. It consists of three elements:
- Interest expense on defined benefit liability: Calculated by multiplying the defined benefit obligation at the beginning of the reporting period by the discount rate.
- Interest income: Calculated by multiplying the fair value of plan assets at the beginning of the reporting period by the same discount rate.
- Interest expense on effect of asset ceiling: Calculated by multiplying the effect of the asset ceiling at the beginning of the reporting period by the same discount rate.
In summary, net interest is the difference between the interest expense on the defined benefit obligation, the interest income on plan assets, and the interest expense on the effect of the asset ceiling.
It is the change in the defined benefit obligation and plan assets due to the passage of time. It consists of three elements:
- Interest expense on defined benefit liability
- Interest income
- Interest expense on effect of asset ceiling
Net interest
What is past service cost?
It is the change in the present value of the defined benefit obligation for employee service in prior periods due to a plan amendment or curtailment. It represents the cost to an entity under a defined benefit plan for services rendered by employees in prior periods, resulting from:
* The introduction of a defined benefit plan
* An amendment to an existing defined benefit plan
* A curtailment of an existing plan
What is past service cost?
It is the — in the present value of the defined benefit obligation for employee service in prior periods due to a plan — or —. It represents the cost to an entity under a defined — plan for — — by employees in prior periods, resulting from:
* The — of a defined — —
* An — to an — defined — plan
* A — of an — —
It is the change in the present value of the defined benefit obligation for employee service in prior periods due to a plan amendment or curtailment. It represents the cost to an entity under a defined benefit plan for services rendered by employees in prior periods, resulting from:
* The introduction of a defined benefit plan
* An amendment to an existing defined benefit plan
* A curtailment of an existing plan
It is the change in the present value of the defined benefit obligation for employee service in prior periods due to a plan amendment or curtailment. It represents the cost to an entity under a defined benefit plan for services rendered by employees in prior periods, resulting from:
* The introduction of a defined benefit plan
* An amendment to an existing defined benefit plan
* A curtailment of an existing plan
Past service cost
What constitutes a plan amendment?
A plan amendment includes the introduction of a new defined benefit plan or changes made to an existing defined benefit plan.
