What is an ASC 715 disclosure?

What is an ASC 715 disclosure?

ASC 715-20, Defined Benefit Plans—General, provides guidance on the presentation and disclosure requirements for single-employer defined benefit pension and other postretirement plans. ASC 715-30, Defined Benefit Plans—Pension, provides accounting guidance related to single-employer defined benefit pension plans.

What is defined benefit remeasurement plan?

Remeasurements of the net defined benefit liability (asset) include actuarial gains and losses, the return on plan assets (excluding amounts included in net interest), and changes in the effect of the asset ceiling (excluding amounts included in net interest), all of which are recognized in OCI.

What are the major differences between postretirement healthcare benefits and pension benefits?

Pension plans are generally funded, but healthcare benefit plans are not. Pension benefits are generally well-defined and level in amount; healthcare benefits are generally uncapped and variable.

What is settlement accounting pension?

A settlement is generally defined as an irrevocable action relieving the plan of primary responsibility for a pension benefit. The most common settlements occur when lump sum benefits are paid, or nonparticipating annuities are purchased to provide benefits.

What is past service cost in gratuity?

7.19 Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits.

What is past service cost?

Past service cost is the term used to describe the change in a defined benefit obligation for employee service in prior periods, arising as a result of changes to plan arrangements in the current period (i.e. plan amendments introducing or changing benefits payable, or curtailments which significantly reduce the number …

Is a 401k a post-retirement benefit?

A 401(k) is a retirement plan to which employees can contribute; employers may also make matching contributions. With a pension plan, employers fund and guarantee a specific retirement benefit for each employee and assume the risk of the financial obligation.

What government employees get after retirement?

A Central Government servant retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial. Minimum pension presently is Rs. 9000 per month.

How does the accounting for postretirement benefits other than pensions differ from the accounting for pensions?

With both pensions and postretirement benefits other than pensions (OPEB), the accounting is based on a company’s promise of postretirement benefits in exchange for employee service. It is the actuarial present value, using the salary level at retirement age, of the benefits earned to date by the employee.

What are some examples of postretirement benefits other than pensions?

Other post-retirement benefits include benefits that employees are paid when they retire that are not pension distributions. Employees often share the cost of these benefits through co-payments. Other post-retirement benefits might include dental, legal services, and tuition credit.

What is ascasc 715-60 all about?

ASC 715-60 notes the following: A postretirement benefit is part of the compensation paid to an employee for services rendered. In a defined benefit other postretirement plan, the employer promises to provide, in addition to current wages and benefits, future benefits during retirement.

What does ASC 715-30 say about defined benefit pension plans?

715-30 Defined Benefit Plans—Pension ASC 715-30 notes the following: This Subtopic provides guidance on defined benefit pension accounting for an employer that offers pension benefits to its employees. This Subtopic focuses on an employer’s accounting for a single-employer defined benefit pension plan.

How many subtopics are there in ASC 715?

You must log in to view this content and have a subscription package that includes this content. ASC 715 comprises six Subtopics, below is an overview of each Subtopic. The content and organization of annual disclosures about defined benefit pension plans and other postretirement benefits

Does ASC 715-30-35-20 apply to gains and losses?

However, ASC 715-30-35-20 permits immediate recognition of gains and losses as a component of net periodic pension cost if that method is applied consistently, and is applied to all gains and losses on both plan assets and obligations.