Submitted by: Submitted by nsalib
Views: 47
Words: 761
Pages: 4
Category: Business and Industry
Date Submitted: 02/02/2015 04:31 AM
Reporting Paper
Nathalie Salib
ACC/541 Accounting Theory and Research
January 29, 2015
Prof. VilarĂ³ Nelms
| |
|To: |CEO |
|From: |Nathalie Salib |
|Date: |1/28/2015 |
|Re: |Required reporting for defined contribution, defined benefit, and other postretirement plans and explanation of |
| |what must happen for the two segments to be eliminated |
When there is an acquisition, there are changes that affect the company that was acquired and the company that did the acquiring. With the recent acquisition, there are some things to consider in regards to the two pension plans and two segments that were included in the company acquired. There are reporting requirements in reference to defined contribution, defined benefit, and other postretirement. Also, when eliminating the two segments there are some things that need to happen.
With a defined contribution plan, there is a set certain amount that the employer will contribute to the plan each period. However, there are no promises on how much of the benefit is to be paid. The benefits that are received by the employees are based upon the return earned on the invested pension funds during the period. Reporting the defined contribution planned is fairly straightforward. In this type of plan, the risk for future benefits is borne by the employee. The only cash outflow for the employer is the annual contribution to the pension plan fund....