US GAAP Accounting for Pensions (2 days)

Introduction

This two-day course provides an in-depth analysis of the standards covering US GAAP accounting for pension costs and other employee benefits. This comprehensive program covers pension accounting (both defined benefit and defined contribution pension plans) and accounting for other employee benefits, including other postemployment benefit plans and employee termination plans.

The course also updates delegates on the latest amendments to FASB statements relating to accounting for pensions and other employee benefits.

This program will answer questions such as:

• What are the accounting recognition and disclosure requirements relating to actuarial gains and losses?
• How is the pension asset or liability on the balance sheet measured?
• When are retirement benefit costs recognized in the financial statements?
• What actuarial assumptions and discount rates are used to determine the amount of pension obligations?
• How are recognition rules applied to deferred compensation, bonus and profit-sharing arrangements?
• What accounting requirements apply to curtailment, settlement and termination benefits?
• How are recognition and measurement rules applied to determine pension asset and liability balances related to business combinations?
• What are the latest developments affecting pension and employee benefit accounting?

Learning Objectives

• Understand the impact of applying the US GAAP standards on accounting for retirement benefit costs
• Comply with measurement and recognition rules for actuarial gains and losses
• Forecast the financial statement effect of US GAAP by understanding the actuarial assumptions and discount rate requirements
• Learn how to calculate the pension asset/liability on the balance sheet
• Apply recognition requirements to deferred compensation, bonus and profit-sharing arrangements
• Implement appropriate accounting methodology for curtailment, settlement and termination benefits
• Understand the pension asset and liability recognition requirements for business combinations
• Be up-to-date with the latest developments affecting pension and employee benefit accounting

Who Should Attend

Industry controllers, accountants, and finance and human resource professionals looking to solidify their knowledge of pension accounting requirements.

Topics

• Overview and Scope
• Key Concepts
  • Attribution
  • Benefit obligations
  • Actuarial assumptions
  • Components of expense
• Return on Plan Assets and Asset Methods
• Other Accounting Concepts
  • Gains and losses
  • Plan amendments
  • Substantive plans and commitments
  • Balance sheet
• Other Important Issues
  • Settlements
  • Curtailments
  • Termination benefits
  • Measurement date
• Defined Contribution Plans
• Accounting for Retirement Benefits Other Than Pensions
• Accounting for Post-Employment Benefits
• Review of Disclosure Requirements
• Employers with Two or More Plans
• Annuity Contracts
• Other Contracts with Insurance Companies
• Multi-employer Plans
• Business Combinations
• IFRS vs. U.S. GAAP
• U.S. GAAP Updates

Teaching Method

• Group live instruction, cases, examples, group work, open discussions
• Illustrative examples of the various types of pension plans and identification of related accounting issues
• Exercises to illustrate defined-benefit pension accounting
• Numerous examples to illustrate classification and accounting for other benefits
• Presentation and discussion of model financial statement disclosures
• Review of real-world financial statements illustrating presentation and disclosures
• Active participation is encouraged
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org .

 

Field of study: Accounting

Prerequisites

Basic understanding of accounting principles based on any national standards. No advance preparation is required for this course.