Pension Plans

|Manufacturing Company A | |Memo To:CEO From:Jon Rhoads, Controller ensure:October 26, 2009 Re:Company Acquisition after(prenominal) the acquisition of Company B, the community result have ii additional different protective cover aims and deuce additional segments to base on. This will substanti in acquaintance increase the complexity of the company’s fiscal inform. The reporting of a delimit contribution support 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 send offs provides various(prenominal) accounts for for each one architectural plan participant and specifies how contributions to the individual’s account be to be determined sort of than specifies the amount of benefits the individual is to receive. The benefits a plan participant will receive depend all on the amount contributed to the plan participant’s account, the returns acquire 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 efficacious in assessing the plan’s present and future might iness to pay benefits (AICPA, 2009). The fin! ancial statements of a defined contribution plan prepared in compliance with generally accepted account statement principles (GAAP) shall be prepared on the accrual basis of business relationship and include both of the future(a) (FASB Codification 962-205-45-1): A statement of utmost assets available for benefits of the plan as of the end of the plan course should present amounts for all of the following (FASB codification 962-205-45-2) 1. tote up assets 2. Total liabilities...If you want to strike a full essay, order it on our website: OrderCustomPaper.com

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