Pension Plans

|Manufacturing Company A | |Memo To:CEO From:Jon Rhoads, Controller check:October 26, 2009 Re:Company Acquisition after(prenominal) the acquisition of Company B, the keep company result have ii additional different recommendation aims and deuce additional segments to base on. This will substanti in assistant increase the complexity of the company’s fiscal reporting. The reporting of a delineate contribution allowance 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 proposes provides various(prenominal) accounts for for each one design participant and specifies how contributions to the individual’s account argon to be determined sort of than specifies the amount of benefits the individual is to receive. The benefits a plan participant will receive depend merely on the amount contributed to the plan participant’s account, the returns clear 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 profitable in assessing the plan’s present and future powerfulness to pay benefits (AICPA, 2009). The financial statements of a defined contr ibution plan prepared in compliance with ge! nerally accepted business relationship principles (GAAP) shall be prepared on the accrual basis of accounting system and include both of the future(a) (FASB Codification 962-205-45-1): A statement of dismiss assets available for benefits of the plan as of the end of the plan social class should present amounts for all of the following (FASB codification 962-205-45-2) 1. gibe assets 2. Total liabilities...If you want to strike a full essay, order it on our website: OrderEssay.net

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