Financial Statements Of Employee Benefit Plans Flashcards
Required FSs for Defined Benefit Pension Plan
Statement of Net Assets Available for Benefits as of the end of the plan year (Comparative Format)
A statement of changes in net assets available for benefits for the year then ended
Information regarding the actuarial present value of accumulated plan benefits
Information regarding the effects, if significant, of certain factors affecting the year to year change in accumulated plan benefits
Required FSs for Defined Contribution Pension Plan
A statement of net assets available for benefits as of the end of the plan year
A statement of changes in net assets available for benefits
Defined Benefit Pension Plan
Different inputs and the annual retirement benefit is defined. The big thing with these is the annual pension expense and the ending liability or the projected benefit obligation.
Defined Contribution Pension Plan
The annual employer contribution is defined, and the performance is up to the employee. Much simpler to account for than defined benefit plans. The employer simply contributes a set annual amount into an investment account for the employee held by a third-party trustee
