Accounting for Pensions & Post Retirement Benefits FLEXCAST

Overview

In 2021, the Congressional Research Service reported that over 70% of all U.S. workers have access to employer-sponsored pensions. The need to properly administer and account for pension funds is critical. There are very specific requirements for pension accounting and postretirement benefits. ASC 715 Compensation-Retirement Benefits provides guidance on financial reporting for employers who offer pension benefits to their employees. ASC 960 Plan accounting-Defined Benefit Pension Plans and ASC 962 Plan Accounting-Defined Contribution Pension Plans address the plan accounting standards for de?ned bene?t plans and de?ned contribution plans respectively. Those detailed calculations of pension cost and reporting requirements produce a complex accounting standard. This CPE course is designed to help you navigate the complexities of this standard. It begins with an overview of the pension system in the U.S. discussing the nature of pension plans, plan participants’ activities, the classification of pension plans, and types of pension plans and their characteristics. It addresses the significance of pension federal laws, including the Employee Retirement Income Security Act, the Pension Protection Act, the Multiemployer Pension Reform Act, and the American Rescue Plan Act. This course also provides current coverage of the requirements for accounting and reporting on pension plans and post-retirement benefits. It includes specific examples to illustrate the application. Relevant references to and excerpts from ASC 715, ASC 960, and ASC 962 are discussed throughout the course.

Highlights

Overview of the pension system. Pension accounting and reporting. Accounting for defined benefit plans. Measurement of plan assets. Measurement of cost and obligations. Recognition of liabilities and assets. Considerations for postretirement benefits. Reporting for defined benefit plans. Accounting and reporting for defined contribution plans. Other matters.

Prerequisites

None.

Designed For

CPAs.

Objectives

Identify the key provisions of pension federal laws. Distinguish between defined benefit and defined contribution plans. Identify the way to evaluate plan assets. Recognize various measures of pension obligations. Identify the components of pension expense. Recognize the pension assets (overfunded plan) and pension liabilities (unfunded plan). Identify the unique accounting practice of postretirement benefits. Recognize the reporting requirements for the employer and pension plans.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.