Gaap vs Ifrs Pension Acctg

Is the Difference in Accounting Treatment of Post-Retirement Benefits under IFRS honorable or Detrimental to the Financial Position of a caller Currently Reporting Under US GAAP? Megan N. Cook, CPA, CFE accountancy 521 Professor Lawrence March 9, 2009 The first indemnity plan offered by an American employer was that of American Express in the year 1875. curb bits plan did not resemble the plans that we see in todays cartridge clip; the first modern specify benefit plan was created in 1940 by the automotive giant star General Motors. These plans of the past still do not resemble plans that we are familiar with today. In the past, employers could exercise a pension put option and, in essence, close the plan polish up at the current level of funding and turn the assets over to the retirees. This is not an optimal situation, as many plans at the time were severely under funded and retirees would be left with pennies on the dollar mark of what they were counting on for retirement. (Fortune, 2005) Post-retirement benefits are volatile on a couple of different fronts; up until the reforms in 1974 which created ERISA and the PBGC, employees had to put subterfuge faith in their employers to secure their futures after their working age were over.

(Fortune, 2005) On an separate front, these benefits pose a significant invoice problem how should a company account for the costs and liabilities associated with these benefits they had to knuckle under their employees at a later and relatively indeterminable date? Prior to FAS 87, the only item that a company would testify on their financial statements was the actual benefits paid within the account statement period. There were no footnote disclosures or any other supplemental data available. Expensing post-retirement benefits as incurred does not portray the economical reality of the transactions surrounding the pension. There is an inherent liability, as employers are required to pay their employees these benefits in the future.... If you want to mother a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .