CHAPTER 20 Accounting for Pensions and Postretirement Benefits ASSIGNMENT CLASSIFICATION TABLE BY TOPIC Topics Questions Exercises Exercises Brief 16 Problems Concepts for Analysis 1 2 3 4 5 7 1 Basic definitions and concepts related to pension plans 1 2 3 4 5 6 7 8 9 12 24 30 2 Worksheet preparation 3 3 Income statement recognition computation of pension expense 9 10 11 13 16 17 1 2 4 3 4 7 10 14 15 18 1 2 4 7 8 9 10 11 12 1 2 3 4 5 6 9 11 12 4 5 1 2 3 6 11 13 14 15 16 17 18 4 Balance sheet recognition computation of pension expense 15 19 20 22 23 6 10 3 9 11 12 13 14 1 2 3 4 5 6 7 8 9 11 12 2 5 7 5 Corridor calculation 18 7 6 Prior service cost 12 13 20 5 6 8 8 13 14 16 17 18 2 3 5 6 7 8 11 12 3 4 5 6 1 2 3 5 9 11 12 13 14 1 2 3 4 6 7 8 9 11 12 1 4 7 9 10 8 9 13 14 16 17 1 2 3 4 5 6 7 8 9 11 12 4 5 6 9 11 12 11 12 3 4 7 Gains and losses 8 Disclosure issues 9 Special Issues 14 17 21 22 23 25 26 27 28 29 10 Postretirement benefits 11 12 19 20 21 22 23 24 13 14 This material is dealt with in an Appendix to the chapter 20 1 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only ASSIGNMENT CLASSIFICATION TABLE BY LEARNING OBJECTIVE Learning Objectives Brief Exercises Exercises Problems 1 2 3 5 7 8 9 Distinguish between accounting for the employer s pension plan and accounting for the pension fund Identify types of pension plans and their characteristics Explain alternative measures for valuing the pension obligation 4 List the components of pension expense 1 2 4 Use a worksheet for employer s pension plan entries 6 Describe the amortization of prior service costs 3 5 Explain the accounting for unexpected gains and losses 1 2 6 11 12 13 15 3 4 7 10 11 14 18 1 2 5 7 12 13 12 13 Explain the corridor approach to amortizing gains and losses 7 8 12 13 16 17 18 Describe the requirements for reporting pension plans in financial statements 6 8 9 10 9 11 12 13 10 11 Identify the differences between pensions and postretirement healthcare benefits Contrast accounting for pensions to accounting for other postretirement benefits 11 12 11 12 19 20 21 22 23 24 19 20 21 22 23 24 1 2 4 7 8 9 10 11 12 1 2 3 4 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 3 4 5 6 8 11 12 1 2 3 4 8 11 12 13 14 13 14 20 2 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only ASSIGNMENT CHARACTERISTICS TABLE Level of Difficulty Description Simple Pension expense journal entries Simple Computation of pension expense Moderate Preparation of pension worksheet Simple Basic pension worksheet Moderate Application of years of service method Simple Computation of actual return Moderate Basic pension worksheet Application of the corridor approach Moderate Disclosures Pension expense and other comprehensive income Moderate Moderate Pension worksheet Moderate Pension expense journal entries statement presentation Moderate Pension expense journal entries statement presentation Complex Computation of actual return gains and losses corridor test and pension expense Time minutes 15 20 10 15 15 25 10 15 15 25 10 15 15 25 20 25 25 35 20 25 20 30 20 30 35 45 E20 14 Worksheet for E20 13 E20 15 E20 16 Pension expense journal entries Amortization of accumulated OCI G L corridor approach pension expense computation Amortization of accumulated OCI balances Pension worksheet missing amounts Postretirement benefit expense computation Postretirement benefit worksheet Postretirement benefit expense computation Postretirement benefit expense computation Postretirement benefit worksheet Postretirement benefit worksheet missing amounts 2 year worksheet 3 year worksheet journal entries and reporting Pension expense journal entries amortization of loss Pension expense journal entries for 2 years Computation of pension expense amortization of net gain or loss corridor approach journal entries for 3 years Computation of prior service cost amortization pension expense journal entries and net gain or loss Pension worksheet Comprehensive 2 year worksheet Comprehensive 2 year worksheet Pension worksheet missing amounts Pension worksheet Pension worksheet Postretirement benefit worksheet Postretirement benefit worksheet 2 years Complex Moderate Moderate Moderate Moderate Moderate Moderate Simple Simple Moderate Moderate Moderate Complex Complex Moderate Complex Moderate Complex Moderate Moderate Moderate Moderate Moderate Moderate 40 50 15 20 25 35 30 40 20 25 5 10 25 30 10 12 10 12 15 20 25 30 40 50 45 55 40 50 30 40 45 55 35 45 45 60 40 45 25 30 35 45 35 45 30 35 40 45 Complex 45 60 Item E20 1 E20 2 E20 3 E20 4 E20 5 E20 6 E20 7 E20 8 E20 9 E20 10 E20 11 E20 12 E20 13 E20 17 E20 18 E20 19 E20 20 E20 21 E20 22 E20 23 E20 24 P20 1 P20 2 P20 3 P20 4 P20 5 P20 6 P20 7 P20 8 P20 9 P20 10 P20 11 P20 12 P20 13 P20 14 20 3 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only ASSIGNMENT CHARACTERISTICS TABLE Continued Description Pension terminology and theory Pension terminology Basic terminology Item CA20 1 CA20 2 CA20 3 CA20 4 Major pension concepts CA20 5 Implications of GAAP rules on pensions CA20 6 Gains and losses corridor amortization CA20 7 Nonvested employees an ethical dilemma Level of Difficulty Moderate Moderate Simple Moderate Complex Moderate Moderate Time minutes 30 35 25 30 20 25 30 35 50 60 30 40 20 30 20 4 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only SOLUTIONS TO CODIFICATION EXERCISES CE20 1 Master Glossary a b c d The actuarial present value of benefits whether vested or nonvested attributed generally by the pension benefit formula to employee service rendered before a specified date and based on employee service and compensation if applicable before that date The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels For plans with flat benefit or non pay related pension benefit formulas the accumulated benefit obligation and the projected benefit obligation are the same A plan that defines postretirement benefits in terms of monetary amounts for example 100 000 of life insurance or benefit coverage to be provided for example up to 200 per day for hospitalization or 80 percent of the cost of specified surgical procedures Any postretirement benefit plan that is not a defined contribution postretirement plan is for …
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