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Types of pension schemes: 2 începe să înveți
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Defined contribution, | Defined benefits. CB
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Defined contribution pension scheme definition. 3 începe să înveți
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An entity pays fixed contributions | and will have NO legal or constructive obligation to pay further contributions | if the fund does not hold sufficient assets to pay all employee benefits.
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Defined benefit pension scheme. începe să înveți
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A pension scheme that is not a defined contribution scheme, so constructive or legal obligation exist.
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For a defined contribution scheme, contributions payable are recognised as ... in... 2 începe să înveți
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IAS 19 requires that plan assets are measured at their ... at the at the end of the reporting period. IAS 19: Employee benefits. începe să înveți
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IAS 19 requires that plan liabilities are measured on ... basis. începe să înveți
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IAS 19 requires that plan liabilities are measured on an actuarial basis and are discounted to ... at end of the reporting period. începe să înveți
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Where there is a net asset, the asset ceiling applies. This restricts... începe să înveți
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the VALUE OF THE NET ASSETS reported to the extent that it is regarded as RECOVERABLE. 'value of the net assets'
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Current service cost definition. 2cz începe să înveți
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'increase in the PV of the defined benefit obligation | resulting from employee service in the current period' This is part of the service cost component.
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Past service cost definition. 3cz începe să înveți
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change in PV of the defined benefit obligation| for employee service in prior periods| resulting from a plan amendment or curtailment in a current period This is part of the service cost component.
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Curtailment arises when... începe să înveți
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when there is a SIGNIFICANT reduction in the number of employees covered by a plan. Any gain or loss on curtailment is part of the service cost component.
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A settlement arises when... începe să înveți
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when an entity enters into a transaction | to TERMINATE all or part of the benefits | due to one or more employees under a plan. This is part of the service cost component.
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2 începe să înveți
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The change in measurement in both the plan obligation and the plan assets | due to the passage of time. plan obligation | plan assets
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NIC is largely calculated by... 3cz începe să înveți
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by applying a single discount rate | to the net difference* | between the defined benefit obligation and the FV of the plan assets.
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NIC is charged (or credited) to... IAS 19 Employee benefits începe să înveți
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The remeasurement component arises due to... începe să înveți
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due to differences between the ACCOUNTING ESTIMATES made when for the defined benefit plan, and what has actually happened.
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The remeasurement component is taken to... începe să înveți
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Items of Defined Benefit pension plan are recognised in three statements: 3 începe să înveți
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Items of Defined Benefit pension plan recognised in PoL: 2 începe să înveți
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Service cost component | Net interest component.
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Item of Defined Benefit pension plan recognised in OCI: începe să înveți
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Items of Defined Benefit pension plan recognised in SoFP: 3 începe să înveți
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Plan obligation, | Plan assets, | Asset ceiling*. *If a company has an overall pension asset on its SoFP then the asset can only be recognised up to the level of the asset ceiling. Asset ceiling is the PV of any future cash savings of not having to contribute to the scheme as it is in surplus.
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Treatment of other long-term employee benefits: 2cz începe să înveți
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Account for in similar way to defined benefit pension plans | - spread cost over service period.
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Treatment of short-term employee benefits. 2cz începe să înveți
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Normal accrual accounting. | Cumulating or non-cumulating.
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Treatment of termination benefits. 2cz începe să înveți
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Recognise when an plan Obligation | or when related Restructuring costs are recognised. OR
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Any gain or loss on CURTAILMENT is part of... începe să înveți
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of the service cost component. e.g. 600 (plan obligation) - 10% = 540 | Gain is 60.
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SCC is charged to PoL and is comprised of 3elements: 3 începe să înveți
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Current SC, | Past SC, | any PoL on settlement.
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