Discuss how the accountingfor an employer's defined benefit plan differs from accounting forthe defined benefit's pension fund itself. Discuss how theaccounting for an employer's defined contribution plan differs fromaccounting for the defined contribution fund(s) itself(themselves).

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Hubert KochLv2

28 Sep 2019

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Using the CAFR from Week 1, evaluate your individual entitieswith your team and discuss the following: Does the governmentcontribute to one or more pension plans? Are they defined benefitor defined contribution plans? If they are defined benefit plans,are they single employer (maintained by the government itself) ormultiple-employer. Does the government report pension expenses orexpenditures? If so, in which fund or funds? Does the governmentreport pension liabilities? If so, in which fund or funds? Does theCAFR indicate the actuarial value of plan assets and liabilities?Are the plans overfunded or underfunded? For the state ofCalifornia CAFR

I am unable to download but the CAFR is located here:http://www.sco.ca.gov/Files-ARD-Local/LocRep/cafr15web.pdf

ABC Corporation provides a defined benefit pension plan for its employees. A combination adjusting entry should be made to correctly account for this type of pension plan given the following items of information for the 2014 plan year, including the recording of pension expense and the employer's contribution to the pension plan in 2014.

Note: Use the summary entry method as demonstrated and discussed in the chapter lectures on pension accounting to prepare the adjusting entry.

Pension asset/liability (January 1) $0

Actual return on plan assets $40,000

Expected return on plan assets $20,000

Contributions (funding) in 2014 $37,000

Fair value of plan assets (December 31) $77,000

Settlement rate 10%

Projected benefit obligation (January 1) $0

Service cost $60,000

Benefits paid in 2014 $0

I came up with the following adjusting entries:

Pension Expense 40,000