CH 6 Flashcards
Unrecognized Prior Service Cost formula
Cost / Avg of years of employees
S I R A G E
Service Cost
Interest costs Beg. PBO*Discount Rate
Return on Plan Assets Bef. FV * expected rate
Amortization of Prior Services
Amortization of G/L - see corridor formula
Amortization of transitional assets
Unrecognized G/L
Unrecognized G/L
= Excess/ Avg Service period
Benefits Payable > FV of Plan Assets
Current Liability
F/S plan assets are reported at
FMV
FV of plan assets formula
FV beg \+ Contributions - Payments \+ Return = Ending FV
Actuarial changes effect
Accumulated Pension
Funded Status is reported as
Noncurrent asset or liability
Tax liabilities and assets can be netted on the balance sheet as long
they are both current or both noncurrent
1 - Current Income Tax Expense
2 - Current Liability
3 - Total Income tax expense
1 - taxable income * rate
2 - Taxable income * rate
3- Pretax income * rate
1 - Current Income Tax Expense
2 - Current Liability
3 - Total Income tax expense
4 Deferred Tax expense
1 - taxable income * rate
2 - Taxable income * rate
3- Pretax income * rate
4 difference btw pretax and taxable * rate
Change in income tax for FOLLOWING year expense is
Deferred Tax
Tax Benefit
deductible amount; increases with increased expense
Tax Benefit and increases how
deductible amount; increases with increased expense
Effective Tax formula
Income Tax Expense/ Pretax Income
