Practice Set PENSIONS- PRB

Cases:

Case 14-4 Accounting for Other Postretirement Benefits

Postretirement benefits other than pensions (OPRBs) are similar to defined benefit pension plans in some respects and different in others.

Required:

1. Discuss the characteristics of OPRBs that make them different from defined benefit pension plans.
2. Discuss how the accounting for OPRBs differs from the accounting for defined benefit pension plans.
3. In what respects are OPRBs similar to defined benefit pension plans? Explain.
4. In what respects is the accounting for OPRBs similar to, or the same as, the accounting for defined benefit pension plans? Explain.

Case 14-7 Differences Between Pension and Postretirement Benefit Accounting

Required:

Accounting for pensions and postretirement benefits is similar in many respects; however, there are some differences. Use the following chart to outline some of these differences:

Item		Pensions Postretirement Benefits
Service cost
Interest cost
Total obligation
Minimum liability
Disclosure requirements

FASB ASC Research:

FASB ASC 14-6 Postretirement Health Benefits for Entities in the Coal Industry

The FASB ASC addresses the accounting and reporting for postretirement health benefits for entities in the coal industry affected by the Coal Industry Retiree Health Benefit Act of 1992. Find, cite, and copy the FASB ASC paragraphs that discuss this issue.

FASB ASC 14-8 Postretirement Benefit Cost in Regulated Industries

The FASB ASC provides guidance for accounting for the difference between net periodic postretirement benefit cost and amounts of postretirement benefit cost considered for rate-making purposes as an asset or a liability created by the actions of the regulator. Find, cite, and copy the FASB ASC paragraphs that discuss this issue.