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					Pension Worksheet                               1          2               3               4            5                       6              7            8
SFAS NO. 158                                                          Accounts on Employer's Books                                             Not on Books
                                           Income Stmt    BS               Other comprehensive income stmt                     BS           Memorandum Amounts
                                                                                                                                           Projected
                                            Pension                     Transition      Net actuarial     Prior Service                     Benefit
  2006           CLASSROOM VERSION          Expense       Cash         (Gain)/Loss       (gain)/loss           Cost       Funded Status    Obligation     Plan Assets

BALANCE FORWARD (after implementation of SFAS No. 158)                                                                              -295       -1,095            800    0

              Service Cost                          110                                                                                            -110                 0

       9% Interest Cost                             99                                                                                              -99                 0

     10% Expected return on plan assets             -80                                              80                                                                 0

      110       Corridor Amount                                                                                                                                         0

       25       AOCI Actuarial (BoY)

         0      Excess                                                                                                                                                  0

              AMORTIZATIONS:                                                                                                                                            0

       14       Unrecognized gain/loss                0                                                                                                                 0

                Prior Service Cost                                                                                                                                      0

                Transition Amount                   90                         -90                                                                                      0

Contributions to Pension Plan                                  -120                                                                                              120    0

Retirement Benefits Paid by Plan                                                                                                                   105          -105    0

Actual Return on Plan Assets                                                                      -90                                                              90   0

Actuarial Adjustments to PBO                                                                         33                                             -33                 0

              Amounts for journal entry:            219        -120            -90                   23               0              -32                                0


              AOCI balance forward                                            270                    25
              BALANCES AT YEAR END                                            180                    48                             -327       -1,232            905    0




              Summary journal entry                                       Debit             Credit                        Balance sheet presentation:
 12/31/2006   Pension expense                                         $       219                                         Long term liability                     327   cr
              Cash                                                                      $        120
              AOCI - transition loss                                  $        -        $          90                     Acc'd Other Comp Income
              AOCI - actuarial gain/loss                              $            23   $        -                        AOCI                                    228   dr
              AOCI - prior service cost                               $       -         $        -
              Net pension obligation or asset                         $       -         $          32
                                                                      $       242       $        242
Pension Worksheet                               1          2               3               4            5                    6              7            8
SFAS NO. 158                                                          Accounts on Employer's Books                                          Not on Books
                                           Income Stmt    BS               Other comprehensive income stmt                  BS           Memorandum Amounts
                                                                                                                                        Projected
                                            Pension                     Transition   Net actuarial     Prior Service                     Benefit
  2007           CLASSROOM VERSION          Expense       Cash         (Gain)/Loss    (gain)/loss           Cost       Funded Status    Obligation     Plan Assets

BALANCE FORWARD                                                                                                                  -327       -1,232            905    0

              Service Cost                          120                                                                                         -120                 0

       8% Interest Cost                             99                                                                                           -99                 0

       7% Expected return on plan assets            -63                                           63                                                                 0

      123       Corridor Amount                                                                                                                                      0

       48       AOCI Actuarial (BoY)

         0      Excess                                                                                                                                               0

              AMORTIZATIONS:                                                                                                                                         0

       11       Unrecognized gain/loss                0                                                                                                              0

                Prior Service Cost                                                                                                                                   0

                Transition Amount                   90                         -90                                                                                   0

Contributions to Pension Plan                                  -150                                                                                           150    0

Retirement Benefits Paid by Plan                                                                                                                125          -125    0

Actual Return on Plan Assets                                                                   -60                                                              60   0

Actuarial Adjustments to PBO                                                                  311                                               -311                 0

              Amounts for journal entry:            246        -150            -90            314                  0             -320                                0


              AOCI balance forward                                            180                 48               0
              BALANCES AT YEAR END                                              90            362                  0             -647       -1,637            990    0




              Summary journal entry                                       Debit          Credit                        Balance sheet presentation:
 12/31/2007   Pension expense                                         $       246                                      Long term liability                     647   cr
              Cash                                                                   $        150
              AOCI - transition loss                                  $       -      $          90                     Acc'd Other Comp Income
              AOCI - actuarial gain/loss                              $       314    $        -                        AOCI                                    452   dr
              AOCI - prior service cost                               $       -      $        -
              Net pension obligation or asset                         $       -      $        320
                                                                      $       560    $        560
Pension Worksheet                               1              2               3               4             5                     6              7            8
SFAS NO. 158                                                              Accounts on Employer's Books                                            Not on Books
                                           Income Stmt        BS               Other comprehensive income stmt                     BS          Memorandum Amounts
                                                                                                                                              Projected
                                            Pension                         Transition       Net actuarial   Prior Service                     Benefit
 2008   CLASSROOM VERSION                   Expense           Cash         (Gain)/Loss        (gain)/loss         Cost       Funded Status    Obligation     Plan Assets
BALANCE FORWARD                                                                                                                        -647       -1,637            990
              Plan amendment                                                                                                           -220         -220
ADJUSTED BALANCE FORWARD                                                                                                               -867       -1,857            990      0

              Service Cost                          130                                                                                               -130                   0

       8% Interest Cost                             149                                                                                               -149                   0

       9% Expected return on plan assets            -89                                                 89                                                                   0

      186       Corridor Amount                                                                                                                                              0

      362       AOCI Actuarial (BoY)

      176       Excess                                                                                                                                                       0

              AMORTIZATIONS:                                                                                                                                                 0

        11      Unrecognized gain/loss               16                                                -16                                                                   0

        11      Prior Service Cost                   20                                                                -20                                                   0

                Transition Amount                    90                            -90                                                                                       0

Contributions to Pension Plan                                      -225                                                                                             225      0

Retirement Benefits Paid by Plan                                                                                                                      125          -125      0

Actual Return on Plan Assets                                                                         -140                                                           140      0

Actuarial Adjustments to PBO                                                                            97                                             -97                   0

              Amounts for journal entry:            316            -225            -90                  30             -20              -11                                  0


              AOCI balance forward                                                     90             362              220
              BALANCES AT YEAR END                                                       0            392              200        -878          -2,108             1,230     0
                                                                                                                          Balance sheet presentation:
                                                                                                                          Long term liability
                                                                                                           Journal entry to record plan amendment                       11   cr
              Summary journal entry                         Debit             Credit                                                          Debit            Credit
 12/31/2008   Pension expense                             $     316                                                       Acc'd cost
                                                                                                  1/1/2008 AOCI - Prior serviceOther Comp Income    220
              Cash                                                        $       225                                     AOCI
                                                                                                           Net pension obligation or asset                           220
              AOCI - transition loss                      $          -    $         90
              AOCI - actuarial gain/loss                  $          30   $       -                          Balance sheet presentation:
              AOCI - prior service cost                   $        -      $         20
              Net pension obligation or asset             $        -      $         11                       Long-term liability                                     878
                                                          $        346    $       346
                                                                                                             AOCI                                                    592
Pension Worksheet                               1           2               3               4            5                      6              7            8
SFAS NO. 158                                                           Accounts on Employer's Books                                            Not on Books
                                           Income Stmt     BS               Other comprehensive income stmt                    BS           Memorandum Amounts
                                                                                                                                           Projected
                                            Pension                      Transition       Net actuarial   Prior Service                     Benefit
  2009           CLASSROOM VERSION          Expense        Cash         (Gain)/Loss        (gain)/loss         Cost       Funded Status    Obligation     Plan Assets

BALANCE FORWARD                                                                                                                     -878       -2,108          1,230    0

              Service Cost                          140                                                                                            -140                 0

     11% Interest Cost                              232                                                                                            -232                 0

     10% Expected return on plan assets             -123                                           123                                                                  0

      211       Corridor Amount                                                                                                                                         0

      392       AOCI Actuarial (BoY)

      181       Excess                                                                                                                                                  0

              AMORTIZATIONS:                                                                                                                                            0

       12       Unrecognized gain/loss               15                                             -15                                                                 0

                Prior Service Cost                   20                                                             -20                                                 0

                Transition Amount                                                                                                                                       0

Contributions to Pension Plan                                   -250                                                                                             250    0

Retirement Benefits Paid by Plan                                                                                                                   140          -140    0

Actual Return on Plan Assets                                                                      -128                                                           128    0

Actuarial Adjustments to PBO                                                                        -13                                             13                  0

              Amounts for journal entry:            284         -250                  0             -33             -20              19                                 0


              AOCI balance forward                                                    0            392             200
              BALANCES AT YEAR END                                                    0            359             180              -859       -2,327          1,468    0




              Summary journal entry                                        Debit              Credit                      Balance sheet presentation:
 12/31/2009   Pension expense                                          $       284                                        Long term liability                     859   cr
              Cash                                                                        $        250
              AOCI - transition loss                                   $        -         $        -                      Acc'd Other Comp Income
              AOCI - actuarial gain/loss                               $        -         $          33                   AOCI                                    539   dr
              AOCI - prior service cost                                $        -         $          20
              Net pension obligation or asset                          $        19        $        -
                                                                       $       303        $        303
Pension Worksheet                               1           2               3               4            5                        6              7            8
                                                                       Accounts on Employer's Books                                              Not on Books
                                           Income Stmt     BS               Other comprehensive income stmt                      BS           Memorandum Amounts
                                                                                                                                             Projected
                                            Pension                      Transition       Net actuarial     Prior Service                     Benefit
  2010           CLASSROOM VERSION          Expense        Cash         (Gain)/Loss        (gain)/loss           Cost       Funded Status    Obligation     Plan Assets

BALANCE FORWARD                                                                                                                       -859       -2,327          1,468    0

              Service Cost                          150                                                                                              -150                 0

       8% Interest Cost                             186                                                                                              -186                 0

       9% Expected return on plan assets            -132                                           132                                                                    0

      233       Corridor Amount                                                                                                                                           0

      359       AOCI Actuarial (BoY)

      126       Excess                                                                                                                                                    0

              AMORTIZATIONS:                                                                                                                                              0

       15       Unrecognized gain/loss                8                                                -8                                                                 0

                Prior Service Cost                   20                                                               -20                                                 0

                Transition Amount                                                                                                                                         0

Contributions to Pension Plan                                   -275                                                                                               275    0

Retirement Benefits Paid by Plan                                                                                                                     145          -145    0

Actual Return on Plan Assets                                                                      -149                                                             149    0

Actuarial Adjustments to PBO                                                                           52                                             -52                 0

              Amounts for journal entry:            232         -275                  0                27             -20              36                                 0


              AOCI balance forward                                                    0            359               180
              BALANCES AT YEAR END                                                    0            386               160              -823       -2,570          1,747    0




              Summary journal entry                                        Debit              Credit                        Balance sheet presentation:
 12/31/2010   Pension expense                                          $       232                                          Long term liability                     823   cr
              Cash                                                                        $        275
              AOCI - transition loss                                   $        -         $        -                        Acc'd Other Comp Income
              AOCI - actuarial gain/loss                               $            27    $        -                        AOCI                                    546   dr
              AOCI - prior service cost                                $        -         $          20
              Net pension obligation or asset                          $        36        $        -
                                                                       $       295        $        295
Prior Service Costs are to be amortized by the expected years of service method (or
alternate as long is it is not less rapid)


Assume that ABC Inc. has 23 employees that are expected to provide the listed years of service.

                                             1     2      3        4    5       6       7       8       9       10

                          Expected
 Employee       Number of years of
  Group         employees service
     A                  3              1      3
     B                  5              2      5     5
     C                  5              3      5     5          5
     D                  5              4      5     5          5    5
     E                  2              5      2     2          2    2       2
     F                  3             10      3     3          3    3       3       3       3       3       3    3
                       23                    23    20         15   10       5       3       3       3       3    3

Compute: average remaining service life                     88 years
                                                            23 employees
                                                        3.8261
Straight-line amortization amount
                            880,000
Assume PBO increases by
Amortization schedule for expected years of service method:
Amortization       PSC       Unrecognized
   rate         recognized       PSC        Year

      23/88       230,000      650,000         1
       5/22       200,000      450,000         2
      15/88       150,000      300,000         3
       5/44       100,000      200,000         4
       5/88        50,000      150,000         5
       3/88        30,000      120,000         6
       3/88        30,000       90,000         7
       3/88        30,000       60,000         8
       3/88        30,000       30,000         9
       3/88        30,000            0        10
   1.000000       880,000




   11/29/2011                                               6-
                                                          -1e1b37ee-74d5-404e-b38e-eff679e990c2.xlsx PSC Amort -sol
    88




230,005
230,000




 11/29/2011     7-
              -1e1b37ee-74d5-404e-b38e-eff679e990c2.xlsx PSC Amort -sol

				
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posted:11/29/2011
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