Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 20: Question 21Q (page 1161)

Describe the accounting for actuarial gains and losses.

Short Answer

Expert verified

A pension plan administratorrefers to thegroup of people or a section of a departmentin an organization responsible forhandling each employee's pension plans.

Step by step solution

01

Introduction:

Actuarial gains and losses arise due to the difference in the amounts of actual and expected payments prescribed by the organization's actuary under the pension worksheet.

02

Accounting for actuarial gains and losses:

When an organization faces an actuarial gain or loss, that must be balanced with the amount of estimated pension payment to indicate a more precise and accurate value of the total pension benefit obligations. The amount of adjustments made should be reputed in an organization's financial statements at the end of each accounting period.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

At the end of the current period, Agler Inc. had a projected benefit obligation of \(400,000 and pension plan assets (at fair value) of \)350,000. What are the accounts and amounts that will be reported on the company’s balance sheet as pension assets or pension liabilities?

Englehart Co. provides the following information about its postretirement benefit plan for the year 2017. Service cost $ 90,000 Prior service cost amortization 3,000 Contribution to the plan 56,000 Actual and expected return on plan assets 62,000 Benefits paid 40,000 Plan assets at January 1, 2017 710,000 Accumulated postretirement benefit obligation at January 1, 2017 760,000 Accumulated OCI (PSC) at January 1, 2017 100,000 Dr. Discount rate 9% Instructions Compute the postretirement benefit expense for 2017.

What is the meaning of “corridor amortization”?

AMR Corporation (parent company of American Airlines) reported the following (in millions). Service cost $366 Interest on P.B.O. 737 Return on plan assets 593 Amortization of prior service cost 13 Amortization of net loss 154 Compute AMR Corporation’s pension expense.

What are the major differences between postretirement healthcare benefits and pension benefits?
See all solutions

Recommended explanations on Business Studies Textbooks

Human Resources

Read Explanation

Strategic Direction

Read Explanation

Change Management

Read Explanation

Managerial Economics

Read Explanation

Intermediate Accounting

Read Explanation

Introduction to Business

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free