Ch 9: Pensions & Post-Retirement Benefits

About This Chapter

In this chapter, you will have the opportunity to review methods used to account for pensions and post-retirement benefits. Clarify these accounting methods to boost your high school or college class studies or to review before taking college entrance or placement exams.

Pensions & Post-Retirement Benefits - Chapter Summary

The engaging lessons comprising this chapter provide overviews of accounting processes and calculations that cover retirement compensation, incentive programs, post-retirement health benefits and pension plans. You will gain a better understanding of the importance of these calculations and estimations in the field of accounting. Easily accessible lessons, self-paced study and expert instruction make learning convenient and engaging. Brief self-assessment quizzes are great tools you can use to measure your understanding of these concepts and possible need for further review. After you complete this chapter, you should be able to:

  • Provide details about traditional pensions and 401(k) plans
  • Explain the importance of ERISA law
  • Discuss incentive plans such as profit sharing and employee stocks
  • Prepare accounting information regarding stock options and equity compensation
  • Calculate earnings per share for post-retirement benefits and a pension plan's funded status
  • Employ accounting methods used for defined contribution pension plans
  • Estimate and account for post-retirement health benefits
  • Understand and account for post-retirement benefits and benefit expenses

9 Lessons in Chapter 9: Pensions & Post-Retirement Benefits
Test your knowledge with a 30-question chapter practice test
Retirement Compensation Systems: 401(k) and Pensions

1. Retirement Compensation Systems: 401(k) and Pensions

One of the most valuable benefits an employer may offer to employees are employer-sponsored retirement plans. In this lesson, you'll learn about two common retirement benefits: 401(k) plans and traditional pensions. A short quiz follows.

Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership

2. Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership

One way to tie a company's success to employee success is to utilize incentive programs where employees profit when the company does. In this lesson, you'll learn about profit sharing, gain sharing and employee stock ownership.

Accounting for Stock Options & Equity Compensation Plans

3. Accounting for Stock Options & Equity Compensation Plans

In this lesson, we'll explore the world of stock options. A simple example will be used to illustrate the accounting and journal entries for them. We'll also cover SARs, another form of employee participation in the appreciation of share prices.

Calculating Earnings Per Share for Post-Retirement Benefits

4. Calculating Earnings Per Share for Post-Retirement Benefits

In this lesson we will look at how retirees can determine and use the earnings per share of a company to evaluate the profitability of shares of stock in their retirement investment portfolios.

How to Calculate the Funded Status of a Pension Plan

5. How to Calculate the Funded Status of a Pension Plan

The funded status of a pension plan is the fair value of the plan's assets minus the present value of its projected benefit obligation. We will use an example to calculate both and determine if the pension fund is over or under funded.

How to Account for Defined Contribution Pension Plans

6. How to Account for Defined Contribution Pension Plans

In this lesson, you'll explore the nature of retirement and pension plans, the differences between a defined contribution plan and a defined benefit plan, and the accounting methods used with defined contribution plans.

Estimating & Accounting for Post-Retirement Healthcare Benefits

7. Estimating & Accounting for Post-Retirement Healthcare Benefits

This lesson will explore the issues in calculating the cost of post-retirement healthcare plans for employees. We will also use an example to take you through the mechanics of accounting for these plans.

How to Account for Post-Retirement Benefits

8. How to Account for Post-Retirement Benefits

This lesson will use an example to walk you through the mechanics of accounting for post-retirement benefits. You'll also learn to calculate the accumulated post-retirement benefit obligation.

Accounting for Post-Retirement Benefit Expenses

9. Accounting for Post-Retirement Benefit Expenses

In this lesson, you will learn the two types of post-employment benefit plans that employers might set up for their workers. You'll also see the accounting treatment of the two types of retirement plans and the different components of the post-retirement benefit expense to be recognized.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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