Required Reporting’s for Pension Plans
There are two frequently used pension plans which are defined benefit and contribution plans. Defined contribution plan consist of the employer’s promise to contribute a certain amount into the plan every pay period (Schroeder, Clark, & Cathey, 2005). For example, the company will contribute say 3% of each employee’s salary per pay period that has been employed over a year. This contribution would be the only expense regarding this pension plan for each pay period (Schroeder, Clark, & Cathey, 2005). Defined benefit plans require future amounts to be received will be paid according to the terms of the plan. Under defined benefit plans, there are requirements that must be met. According to the FASB ASC 715-70-50, the employer must disclose amounts of cost recognized for a defined contribution pension plans and for defined contribution postretirement benefit plans for periods that are presented separately from amounts of cost recognized for defined benefit plans (FASB, 2011).
Two New Segments
Regarding the two segments the new acquisition as, leads our company to investigate if the two segments can be eliminated. The provisions for SFAS No. 131 require companies to report separately balance sheet and income statement information about each operating segment (Schroeder, Clark, & Cathey, 2005). In addition to measure of a segment’s profit or loss and total asset, companies must report specific information if it is included in the measure of segment profit or loss by chief...