Distinguish between a deﬁned beneﬁt plan and a deﬁned contribution plan. Why does a deﬁned beneﬁt plan present far more complex accounting issues than a deﬁned contribution plan?
Answer to relevant QuestionsHow should an employer determine its annual pension cost? What minimum GASB criteria must it satisfy?Why is it likely that unfunded actuarial liabilities for postemployment health beneﬁts of many governments will be greater than the correspondingly unfunded actuarial liabilities for pensions, even though the annual ...Hayward City maintains a deﬁned beneﬁt pension plan for its employees. In a recent year the city contributed $5 million to its pension fund. However, its annual pension cost as calculated by its actuary was $7 million. ...Pebble City maintains a deﬁned beneﬁt pension plan for its employees. In a recent year, the city’s consulting actuary calculated that the city’s annual pension cost for the year was $6 million. Its determination was ...Review the comprehensive annual ﬁnancial report (CAFR) you obtained.1. Does the government maintain any permanent funds? If so, are they major or non-major funds and for what purposes?2. Does the government maintain any ...
Post your question