Pension Plans

|Manufacturing Company A | |Memo To:CEO From:Jon Rhoads, Controller realise:October 26, 2009 Re:Company Acquisition after(prenominal) the acquisition of Company B, the smart set result have ii additional different aid aims and deuce additional segments to base on. This will substanti in partner increase the complexity of the company’s fiscal describe. The reporting of a be contribution subsidy design, the reporting of a defined benefit pension externalize and other postretirement pension externalises were reviewed and presented here. The steps necessary to eliminate the two segments of Company B have also been presented. Defined contribution pension casts provides various(prenominal) accounts for from each one intention participant and specifies how contributions to the individual’s account be to be determined sort of than specifies the amo unt of benefits the individual is to receive. The benefits a plan participant will receive depend simply on the amount contributed to the plan participant’s account, the returns pull in on investments of those contributions, and the forfeitures of other plan participants’ benefits that may be allocated to that plan participants account (FASB Codification 715-70-20).

The first objective of a defined contributions plan’s financial statements is to provide information that is utilizable in assessing the plan’s present and future skill to pay benefits (AICPA, 2009) . The financial statements of a defined cont! ribution plan prepared in compliance with generally accepted score principles (GAAP) shall be prepared on the accrual basis of chronicle and include both of the future(a) (FASB Codification 962-205-45-1): A statement of last assets available for benefits of the plan as of the end of the plan course should present amounts for all of the following (FASB codification 962-205-45-2) 1. full(a) assets 2. Total liabilities...If you want to strike a full essay, order it on our website: OrderCustomPaper.com

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