pensions

Question 1

what is SIR AGE used to find? what is SIR AGE

Answer 1

use to find the net periodic pension cost
S-service cost
I-interest cost
R-(return on plan assets)
A-amortization of prior servic cost
G-(gains) and losses
E-amort of Existing net obligation(add) or net asset(subtract)

Question 2

If no actuarial gains/losses were incurred, how do you find the net gain/loss reported in OCI?

Answer 2

actual return-expected return. (net any tax if tax rate is given)

Question 3

under IFRS - On yr10 co. amended its employee defined ben pension plan by granting increased benefits for services provided prior to yr10. This past service cost will be reflected in the FS for?
retro?prospective?etc.

Answer 3

for yr 10 only. IFRS past service cost is recognized on IS in period of plan amendemnt.

Question 4

Required disclosures how many should be disclosed?

Answer 4

Disclose as much as reaonably possible.

Question 5

What is the attribution period? When does is start? end?

Answer 5

Period employee works. Starts at date of hire, & ends at the full eligibility date (DOES NOT end when retired, or when paid).

ex: employees elibible for postr benefits who have completed 10 yrs of service & age 55 or older. Dave is hired at 48 yrs old & retires when he’s 65. The attribution period for accruing employers expected postr healt care benefit obligation to Dave is during the period when Dave is aged 48-58 (when he is eligible)./48-58 is attribution period.. pg27

Question 6

When does accrual of postretirement benefit obligation start?

Employers obligation for postret health benefits expected to be provided must be fully accrued by when?

Answer 6

Accrual begins when employee is hired, & ends at the eligibility (vesting) date. Accrued during period employee works (attribution period).

The date employee is fully eligible for benefits

Question 7

Liabilities for employees compensation for future absences are accrued if what conditions are met?

Answer 7

All 4 are met:
1 Services already rendered by employees (employers obligation to compensate employees for future abences is attributable to services already rendered)

2 Obligation relates to rights that vest or accumulate (aka the liability relates to vested or accum rights).

3 Payment is probable
4 amount can be reasonably estimated