Please enable JavaScript.
Coggle requires JavaScript to display documents.
Accounting - Coggle Diagram
Accounting
ASC 715
-
-
-
-
-
-
-
Choice of assumptions ultimately responsibility of employer, although the actuary would normally comment on or propose the basis
FRS102
Pension cost recognised in P&L= current service cost +/- net interest on net defined liability +/- plan introductions, benefit changes, curtailments and settlements
-
-
-
Assumptions responsibility of directors, but should take actuarial advice.
Overall, assumptions should represent best estimate
Discount rate set by reference to the yield on high-quality corporate bonds of equivalent term and currency to the liabilities
IAS19
Pension cost recognised in P&L= current service cost +/- net interest on net defined liability + past service cost- gains (losses) on curtailments and settlements
-
-
-
-
-
Discount rate set by reference to the yield on high-quality corporate bonds of equivalent term and currency to the liabilities
Accounting standards
Prepared by various accounting bodies to advise actuaries and auditors on how to treat pension liabilities in company accounts
-
Basic aims
avoiding distortions resulting from fluctuations in the flow of contributions from the employer to the pension scheme
-
-
-
Basic principle
-
to allow informed readers of the accounts to form a realistic opinion of the company's financial development over the accounting period and its position at the end of the period.
-