Reporting on Two Different Pension Plans and Eliminate Two Segments
Reporting
Reporting
Pamela Jefferies
ACC 541
October 19, 2010
Christine Errico
Abstract Our company has acquired a new manufacturing company. The new company has certain components, which are different from the new parent company. First, it has two different pension plans, which our company will have to research and to learn how to report on our financial statement. Also they have two different segments, which our objective is to eliminate. Our first goal is to define the pension plans and other retirement benefit plans and how we are to report them on our financial statements. Our second goal is to define the steps to eliminate the two segments within the guidelines of the Federal Accounting Standard Boards and the Statement of Financial Accounting Standards.
Reporting
Acquiring a new company is always stressful as all the different components are recognized and defined. We have acquired a new company that has two segments and two different pension plans. Our goal is to define the pension plans and how we are to report them on our financial statements. We will discuss the two segments and what we need to do to eliminate them correctly without repercussions to the parent company. This report will assist the Chief Executive Officer in making the decisions he will need going forth with our new acquisition. .
Defined Contribution Plan
The first pension plan defined is called a defined contribution plan. In this pension plan the employer has agreed to contribute a certain amount each year. Sometimes both the employer and employee agree to contribute to the employee’s account. The contributions are invested for the employee and at retirement he or she will receive the balance in the employee’s account, which consists of the contributions plus or minus the gains or losses. The account value will fluctuate because of the value of the investments. Some examples of defined contribution accounts are 401(k) plans, 403(b) plans, employee stock
Reporting
Pamela Jefferies
ACC 541
October 19, 2010
Christine Errico
Abstract Our company has acquired a new manufacturing company. The new company has certain components, which are different from the new parent company. First, it has two different pension plans, which our company will have to research and to learn how to report on our financial statement. Also they have two different segments, which our objective is to eliminate. Our first goal is to define the pension plans and other retirement benefit plans and how we are to report them on our financial statements. Our second goal is to define the steps to eliminate the two segments within the guidelines of the Federal Accounting Standard Boards and the Statement of Financial Accounting Standards.
Reporting
Acquiring a new company is always stressful as all the different components are recognized and defined. We have acquired a new company that has two segments and two different pension plans. Our goal is to define the pension plans and how we are to report them on our financial statements. We will discuss the two segments and what we need to do to eliminate them correctly without repercussions to the parent company. This report will assist the Chief Executive Officer in making the decisions he will need going forth with our new acquisition. .
Defined Contribution Plan
The first pension plan defined is called a defined contribution plan. In this pension plan the employer has agreed to contribute a certain amount each year. Sometimes both the employer and employee agree to contribute to the employee’s account. The contributions are invested for the employee and at retirement he or she will receive the balance in the employee’s account, which consists of the contributions plus or minus the gains or losses. The account value will fluctuate because of the value of the investments. Some examples of defined contribution accounts are 401(k) plans, 403(b) plans, employee stock
References: Financial Accounting Standards Board. (n.d.). Accounting standards codification 205-20-45-1. Retrieved from http://www.fasb.org Hurtt, D. N., Kreuze, J. G., & Langsam, S. A. (2007, July). Displaying the funding status of postretirement plans. The CPA Journal, 707(0), 34. Retrieved from http://www.nysscpa.org/printversions/cpaj/2007/707/p34.html Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2005). Financial Accounting Theory and Analysis (8th ed.). Hoboken, NJ: John Wiley & Sons. Security and exchange commission. (n.d.). Security and exchange. Retrieved from http://www.sec.gov/rules/final/33-7620.txt Shaw, K. W. (2008, March). New accounting rules for defined benefit pension plans. The CPA Journal, 308(0), 32. Retrieved from http://www.nysscpa.org/printverisons/cpaj/2008/308/p32.html