Reporting Paper

As one can imagine, many factors needs to be taken into consideration when forgening on acquiring some former(a) company. One of these factors is which type of retirement computer programme is to be offered to the employees, whether quarter parcel, delimitate benefit, or other postretirement plans. The other factor that should be considered is how the segments should be eliminated and how the elimination of the segments will effect the financial statements. separately of these factors will be discussed within this memo. The first of the issues to be discussed is the coverage that is required for each of the different types of retirement plans offered by the company. The 2 that are most often offered by employers are imbibe percentage and outlined benefit. The first of the retirement plans that is to be examined is the define contribution type. This is one of the easiest types of plans to report. With this plan in place, the employer is only trustworthy for their con tribution to the employees plan. Even so, the employer must report this plan in several ways.

Not only should the capital leak be recorded, but also according to Schroeder, Clark & Cathey, the financial statements should break down the existence of the plan, the employee groups covered, the basis for determining contributions, and any significant matters stop upon comparability from period to period (Schroeder, Clark, & Cathey, 2011, P. 457). The second most touristed type of retirement plan that can be offered is the specify benefit option. With this type of plan in place, the accounting becomes much(prenominal) more difficult than the defined contributi! on option. Where the only coin outflow that occurs with the defined contribution comes through the annual contribution due to the responsibility of the plans payment lies with the employee, with the defined benefit plan there is no such incite for cash outflows as the responsibility for the future payments belongs to the employer. Many factors guard an influence on what amount of...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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