ACTG 3120 Lecture Notes - Lecture 8: Accrued Interest, Income Statement, Pension
18 Jan 2016
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Look at lab questions to see if understood. Recod when happen, to avoid cookie jar (both ifrs and aspe) Know how to do tax benefit stuff for pensions. Popular in 60"s, because stock market over doing so they had pension holidays. Invested by trustee on behalf of the employee. If you pre-paid pension overpayment is an asset if can deduct from future payments or cash refund. Contributions known as current service costs for the period. If paid contribute late by more than 12 months discount. Eventual benefits to employees is responsibility of company (riskf or employer) Veted: employee entitled to receive benefits untila certin amt of time. Independent trustee who receives the pension contributions from the employer, and invests for them. Only when u use a trustee u get a tax benefit as a registered pensions. If not trusted, company must show pension plan assets and accured benefit liability separetly on sfp.
