Report on Benefit Plans

Segments and Reporting of Contributions

Nicole Forbes

ACC/541

October 3, 2011

Zandra Zamora

EXECUTIVE MEMORANDUM

TO: Mr. John Black, CEO I

FROM: Nicki-Ann Thomas-Forbes, Controller

DATE: October 03, 2011

SUBJECT: Segments and Reporting of Contributions

CC: Shelly Brown, CEO II

______________________________________________________________________________

Mr. Black it is an honor to welcome you as the newest Chief Executive Officer (CEO) of our company. When one company acquires another the operations, policies, and practices are sure to change. It is a fact that acquisition of a new company can leads to adverse effects, especially in the area of the retirement benefit plans for the employees. In this case of multiple business segments with separate postretirement plans and the intention to eliminate each, many factors must be considered in relation to accounting reporting requirements. More specifically, the reporting for Defined Contribution (DCP), Defined Benefit (DBP), and other postretirement plans must be researched and the proper procedures followed. However as a company and with the expertise available the transition should be fairly smooth.

The new company that has been acquired consists of two segments. However, expelling the two segments from the company which has been suggested might not be as easy as it may seem.

Defined Contribution Plan (DCP)4

There are two frequently used pension plans that are Defined Contribution and Defined Benefit plans. Defined Contribution Plan (DCP) is a retirement plan that an employer promises to contribute toward an employee’s retirement funds periodically. Most companies will match whatever an employee contributes towards the fund. However, there would be no promise as to the ultimate benefits that would be paid into the funds because the retirement benefits are determined by the returned earned on the...