Chapter 20Accounting for Pension Plans

1. What is the difference between a defined contribution pension plan and a defined benefit contribution plan?

2. How do you determine the amount of pension expense to recognize each year under a defined contribution plan?

3. What does the balance in the pension asset/liability account represent?

4. What factors are included in determining the amount of pension expense to recognize each year under a defined benefit plan? Define or explain each factor.

5. What are prior service costs? How do you determine the amount that should be recognized (amortized) each period?

6. How do you report expected versus actual returns on the pension worksheet?

7. What are the two types of gains/losses associated with defined benefit pension plans?

8. How do you determine the amount of unrecognized gain/loss that should be amortized and included in pension expense each year?

9. Where are OCIprior service costs and OCIgains/losses reported?

10. Where is Accumulated Other Comprehensive Income reported?

11. What adjustment needs to be made on the Statement of Cash Flows relating to accounting for defined benefit pension plans?