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    Q A Employees Benefits 3

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    Norlailah Amanollah
    Defined contribution plans place investment risks on employees, have straightforward accounting, and do not involve actuarial assumptions or recognition of gains and losses. Defined benefit plans place investment risks on employers, involve complex computations using actuarial assumptions, recognize actuarial gains and losses, and require discounted measurements. Defined contribution plans report expenses in profit and loss and liabilities in the balance sheet, while defined benefit plans report service costs, interest, and remeasurements in profit and loss or other comprehensive income and report deficits or surpluses in the balance sheet.

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    Q A Employees Benefits 3

    Uploaded by

    Norlailah Amanollah
    12 views1 page
    Defined contribution plans place investment risks on employees, have straightforward accounting, and do not involve actuarial assumptions or recognition of gains and losses. Defined benefit plans place investment risks on employers, involve complex computations using actuarial assumptions, recognize actuarial gains and losses, and require discounted measurements. Defined contribution plans report expenses in profit and loss and liabilities in the balance sheet, while defined benefit plans report service costs, interest, and remeasurements in profit and loss or other comprehensive income and report deficits or surpluses in the balance sheet.

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    Q-A-employees-benefits-3

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    Defined contribution plans place investment risks on employees, have straightforward accounting, and do not involve actuarial assumptions or recognition of gains and losses. Defined benefit plans place investment risks on employers, involve complex computations using actuarial assumptions, recognize actuarial gains and losses, and require discounted measurements. Defined contribution plans report expenses in profit and loss and liabilities in the balance sheet, while defined benefit plans report service costs, interest, and remeasurements in profit and loss or other comprehensive income and report deficits or surpluses in the balance sheet.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    12 views1 page

    Q A Employees Benefits 3

    Uploaded by

    Norlailah Amanollah
    Defined contribution plans place investment risks on employees, have straightforward accounting, and do not involve actuarial assumptions or recognition of gains and losses. Defined benefit plans place investment risks on employers, involve complex computations using actuarial assumptions, recognize actuarial gains and losses, and require discounted measurements. Defined contribution plans report expenses in profit and loss and liabilities in the balance sheet, while defined benefit plans report service costs, interest, and remeasurements in profit and loss or other comprehensive income and report deficits or surpluses in the balance sheet.

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    © All Rights Reserved
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    Q&A-EMPLOYEES BENEFIT-3

    1 Differentiate defined contribution plan and defined benefit plan as to the following aspects:
    1. Investment risks
    2. How to account
    3. As to actuarial assumptions
    4. As to recognition of actuarial gains and losses
    5. Measurement

    DEFINED CONTRIBUTION DEFINED BENEFIT PLAN


    PLAN
    1. Investment - Borne by the - Borne by the employer
    risks employees
    2. How to - Straightforward - With complex
    account computation using
    actuarial assumptions
    3. Are there None Yes, required
    actuarial
    assumptions?
    4. Do we none Possibility of actuarial gains
    recognize and losses
    actuarial gains
    and losses
    5. Measurement Undiscounted Discounted
    How do you present related accounts of Defined Contribution plan and Defined Benefit plan in the
    Financial Statements?

    Defined Contribution plan Defined Benefit plan


    Profit & loss Profit & Loss
    ➢ expense ➢ service cost
    ➢ interest
    Balance sheet
    ➢ liability OCI
    ➢ Remeasurement

    Balance sheet
    ➢ underfunded-Deficit
    ➢ overfunded or Surplus

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