Accounting Study Guide

U.S. GAAP Codification Accounting Topics

Financial Reporting Guide

Principles of AccountingU.S. GAAP Financial Reporting Guide
Accounting by TopicAccounting Terms Dictionary

Section 7100: Employee Benefits

[U.S. GAAP Codification Topic]
710 Compensation - general
710-10 Overall
712 Compensation - nonretirement postemployment benefits
712-10 Overall4
715 Compensation - retirement benefits
715-10 Overall
715-20 Defined benefit plans-general
715-30 Defined benefit plans-pension
715-60 Defined benefit plans-other postretirement
715-70 Defined contribution plans
715-80 Multiemployer plans

[U.S. GAAP before the Codification]
SFAS 43, November 1980, Accounting for Compensated Assets
SFAS 112, November 1992, Employers' Accounting for Postemployment Benefits, an amendment of FASB Statements No. 5 and 43

SFAS 87, December 1985, Employers' Accounting for Pensions
SFAS 88, December 1985, Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits
SFAS 106, December 1990, Employers' Accounting for Postretirement Benefits Other Than Pensions

SFAS 132, February 1998, Employers' Disclosures about Pensions and Other Postretirement Benefits
SFAS 132(R), December 2003, Employers' Disclosures about Pensions and Other Postretirement Benefits
SFAS 158, December 2006, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)

1. Key Topics of Employers' Accounting for Pensions
(1) Basic elements of pension accounting
(2) Recognition: Net periodic pension cost
(3) Recognition: Liabilities and assets
(4) Measurement: Costs and obligations
(5) Measurement: Plan assets
(6) Multiemployer plans

2. Projected Benefit Obligation (PBO)
Actuarial present value of benefits,
--> based on future compensation levels

3. Accumulated Benefit Obligation (ABO)
Actuarial present value of benefits,
--> based on current and past compensation levels

4. Vested Benefit Obligation
--> Vested portion of accumulated benefit obligation

5. Components of Net Periodic Pension Cost
(1) Service cost
(2) Interest cost
(3) Actual return on plan assets
(4) Gain or loss
(5) Amortization of prior service cost or credit
(6) Amortization of net transition asset or obligation

6. Service Cost
Actuarial present value of benefits
--> attributed to
--> employee service
--> during the period

7. Interest Cost
Increase in the Projected Benefit Obligation
--> due to the passage of time

8. Interest cost is accrued
--> at the assumed discount rates

9. Actual Return on Plan Assets
The difference between (1) and (2)
--> as adjusted for (3)
(1) Fair value of plan assets at the beginning of the period
(2) Fair value of plan assets at the end of the period
(3) Contributions and Benefit Payments

10. Prior Service Cost
(1) Retroactive benefits due to plan amendments are
--> charged to Other Comprehensive Income (OCI)
--> at the date of amendment

(2) Amortized over future period of service
--> of each employee active at the date of amendment
--> equal amount to each period

(3) Amortized amount is
--> a component of net periodic pension cost

11. Gains and Losses
(1) Unexpected changes in the amount of
--> Plan Assets or Projected Benefit Obligation (PBO)

(2) Unexpected changes
--> Assets: Actual return - Expected return
--> PBO: Forecast errors on actuarial assumptions

12. Unrecognized Gains and Losses
(1) Gains and losses are
--> not required to be recognized
--> in net periodic pension cost
--> when they occur
(2) Unrecognized gains and losses are
--> accumulated in Other Comprehensive Income (OCI)

13. Corridor Approach
(1) If unrecognized gains and losses accumulated in OCI
--> does not exceed 10% of (A),
--> no amortization

(A) the greater of (B) and (C)
(B) Market-related value of plan assets
(C) Projected Benefit Obligation

(2) If unrecognized gains and losses accumulated in OCI
--> exceeds 10% of (A)
--> the excess is amortized
--> amortization is included in net periodic pension cost

14. Minimum amount of amortization
(1) The excess is divided by
--> the average remaining service period of
--> active employees
--> expected to receive benefits

(2) If all or almost all participants are inactive
--> the average remaining life expectancy of
--> inactive participants
--> is used

15. Market-related value of plan assets
(1) Market-related Value is either (a) or (b)
(a) Fair Value
(b) Calculated Value

(2) Calculated value is the amount
--> that recognizes changes in fair value
--> in a systematic and rational manner
--> over NOT more than 5 years

16. Unfunded PBO
(1) Fair Value of Plan Assets
(2) Projected Benefit Obligation (PBO)

If (1) < (2)
--> recognize Unfunded PBO as a liability

If (1) > (2)
--> recognized Overfunded PBO as an asset

Index of U.S. GAAP Financial Reporting Guide

U.S. GAAP by Codification Topics 
 105  GAAP Hierarchy 
 105  GAAP History 

 205  Presentation of Financial Statements 
 205-20 Discontinued Operations 
 210  Balance Sheet 
 210-20 Offsetting 
 220  Comprehensive Income 
 225  Income Statement 
 225-20 Extraordinary and Unusual Items 
 230  Statement of Cash Flows 
 250  Accounting Changes and Error Corrections 
 260  Earnings per Share 
 270  Interim Reporting
 310  Impairment of a Loan
 320  Investment Securities 
 320  Other-Than-Temporary Impairments, FSP FAS 115-2 
 320-10-05 Overview of Investments in Other Entities 
 320-10-35 Reclassification of Investments in Securities
 323-10 Equity Method Investments
 323-30 Investments in Partnerships and Joint Ventures 
 325-20 Cost Method Investments 
 330  Inventory

 340-20 Capitalized Advertising Costs 
 350-20 Goodwill 
 350-30 Intangibles Other than Goodwill 
 350-40 Internal-Use Software 
 350-50 Website Development Costs 
 360  Property, Plant and Equipment
 360-20 Real Estate Sales

 410  Asset Retirement and Environmental Obligations 
 420  Exit or Disposal Cost Obligations 
 450  Contingencies 
 450-20 Loss Contingencies 
 450-30 Gain Contingencies
 480  Redeemable Financial Instruments 

 505-20 Stock Dividends, Stock Splits 
 505-30 Treasury Stock 

 605  SEC Staff Accounting Bulletin, Topic 13 
 605-25 Revenue Recognition - Multiple Element Arrangements 
 715-30 Defined Benefit Plans - Pension
 718  Share-Based Payment 
 730  Research and Development 
 730-20 Research and Development Arrangements 

 805  Business Combinations  
 810  Consolidation 
 810  Noncontrolling Interests 
 810  Consolidation of Variable Interest Entities, SFAS 167 
 815  Derivatives and Hedging Overview 

 820  Fair Value Measurements  
 820  Fair value when the markets are not active, FSP FAS 157-4
 825  Fair Value Option 

 830  Foreign Currency Matters 
 830-20 Foreign Currency Transactions 
 830-30 Translation of Financial Statements 
 835  Interest 
 835-20 Capitalization of Interest 
 835-30 Imputation of Interest 

 840  Leases 
 840-20 Operating Leases 
 840-30 Capital Leases 
 840-40 Sale-Leaseback Transactions
 845  Nonmonetary Transactions 

 855  Subsequent Events 
 860-20 Sale of Financial Assets, SFAS 166 
 860-50 Servicing Assets and Liabilities, SFAS 156 

 985-20 Costs of software to be sold  

Copyright © AccountingInfo.comTM  Legal Disclaimer