F7-M3 - Retirement Benefits Other Than Pensions Flashcards
The cost of retirement health care and other benefits is accrued if the obligation is attributable to services (3)
1) services already rendered; 2) their rights accumulate or “vest”; payment is probable; and 3) the amount can be reasonably estimated.
Benefits are accrued over the attribution period, the period from the date_______ to the date _________.
date of hire to the date fully eligible for the benefit.
____________ must be reported as described above for pension plans.
Postretirement benefit plans
_________ is the present value of future benefits that have vested as of the measurement date.
Accumulated postretirement benefit obligation (APBO)
APBO is discounted using an assumed _________.
discount rate.
The __________is used to determine the APBO, EPBO, and the service and interest cost components of net periodic postretirement benefit cost.
discount rate
______________ is the present value of all future benefits expected to be paid as of the measurement date.
Expected postretirement benefit obligation (EPBO)
Expected postretirement benefit obligation (EPBO), It includes the amount that has vested (APBO) plus the ___________________________
present value of expected future benefits that have not yet vested.
The Income Statement formula for the APBO is calculated as
Current Service Cost Interest Cost (on APBO) < Return on Plan Assets > Amortization or Prior Service Cost < Gains > and Losses Amortization / Expense Transition Amount (Net Obligation) Net Postretirement Benefit Cost
Companies must report the funded status of their postretirement benefit plan(s) on the balance sheet as an _____________________
asset or a liability (of both)
If a company has multiple postretirement benefit plans, the funded status is _______________
funded status of each plan is calculated separately.
The funded status of a postretirement benefit plan is calculated using the following formula:
Fair value of plan assets < APBO >
Funded status
