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ACC 541 Week 5 Reporting Paper
Link : http://uopexam.com/product/acc-541-week-5-reporting-paper/
Sample content
Reporting ...
TO: Chief Executive Officer
FROM: Financial Controller
DATE:
SUBJECT: Required Reporting for Pensions and Other Postretire...
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ACC 541 Week 5 Reporting Paper 2015 version

Sample content

Reporting Paper

ACC/541

MEMORANDUM

TO: Chief Executive Officer

FROM: Financial Controller

DATE:

SUBJECT: Required Reporting for Pensions and Other Postretirement Plans

Several issues have to be considered in the wake of the firm’s recent acquisition of a new company. First, the acquired company has two different pension plans whose reporting requirements are unfamiliar to the firm. Second, the acquired company has two segments that do not fit the firm’s requirements, and should be targeted for closure. Hence, this memo describes the reporting requirements of pension plans, namely, defined contribution plans, defined benefit plans and Other Postretirement Plans or OPEBs. In addition, this memo describes how to close an unwanted segment.

Defined contribution plans are plans in which the employer agrees to pay a fixed amount to the employee’s pension fund each year while the employee works for the company. In comparison, defined benefit pl

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ACC 541 Week 5 Reporting Paper 2015 version

  1. 1. ACC 541 Week 5 Reporting Paper Link : http://uopexam.com/product/acc-541-week-5-reporting-paper/ Sample content Reporting Paper ACC/541 MEMORANDUM
  2. 2. TO: Chief Executive Officer FROM: Financial Controller DATE: SUBJECT: Required Reporting for Pensions and Other Postretirement Plans Several issues have to be considered in the wake of the firm’s recent acquisition of a new company. First, the acquired company has two different pension plans whose reporting requirements are unfamiliar to the firm. Second, the acquired company has two segments that do not fit the firm’s requirements, and should be targeted for closure. Hence, this memo describes the reporting requirements of pension plans, namely, defined contribution plans, defined benefit plans and Other Postretirement Plans or OPEBs. In addition, this memo describes how to close an unwanted segment. Defined contribution plans are plans in which the employer agrees to pay a fixed amount to the employee’s pension fund each year while the employee works for the company. In comparison, defined benefit plans are plans in which the employer guarantees to pay the employee a fixed monthly income for life at retirement. The fixed monthly income to be paid to the employee is calculated using a pre- determined formula that usually takes into account the employee’s years of service, annual salary, and in some instances, age (Ruppel, 2010). Both pension plans guarantee the employee will receive monetary compensations, either directly or indirectly, from the employer at retirement. The financial reporting of defined contribution plans is straightforward. The employer only records the pension expense that equals the cash contribution to the employee. For instance, when the company agrees to pay the equivalent of five percent (5%) of the annual salary of the employee to the pension plan, the company’s financial reports would have to reflect this pension expense. On the other hand, in reporting defined benefit plans, the financial reports of the company would record the fixed retirement benefit and the designated formula used to calculate it (Epstein, 2009). The pension plan assets of the company are not recorded on the balance sheet. However, these should be include http://uopexam.com/product/acc-541-week-5-reporting-paper/

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