Pensions Flashcards
1
Q
What is the Projected Benefit Obligation (PBO)?
A
Reflects FUTURE compensation levels
2
Q
What is the Accumulated Benefit Obligation?
A
Present Value of pension benefits accrued based on PRESENT compensation levels
3
Q
How is Pension Expense calculated?
A
"PRIUS" \+ Prior Service Cost Amortization - Return on Plan Assets (Estimated) \+ Interest (B. PBO x Interest Rate & Increase in PBO due to time) \+ Unexpected Loss (- Gain) \+ Service Cost \: Pension Expense
4
Q
How is an Overfunded PBO classified on the Balance Sheet?
A
As a Non-Current Asset
5
Q
How is an Underfunded PBO classified on the Balance Sheet?
A
As a Non-Current Liability
6
Q
How and where are the Gains and losses from the change in the FV of Plan Assets recorded?
A
Recorded net of tax in OCI
7
Q
What are the required F/S disclosures for Pensions?
A
Pension funding policies Types of assets held 5 year benefits to be paid 5 year benefits in aggregate thereafter Estimated Pension Contribution for next period
8
Q
What are vested benefits?
A
Benefits owed to the employee regardless of continuance of employment.
Via the Full Eligibility Date
