Which of the following are required disclosures in the notes to the financial statements for a company with a defined benefit pension plan under ASC 715?
Christopher Davis
Updated on February 07, 2026
Defined Benefit Pension Plan: ASC 715 requires disclosure of: The funded status of the pension plans and the amounts recognized in the balance sheet showing separately the assets, current liabilities, and noncurrent liabilities.
What happens to pension plan if company closes?
The employer can end the plan in a standard termination but only after showing PBGC that the plan has enough money to pay all benefits owed to participants. If the application is granted, PBGC will take over the plan as trustee and pay plan benefits, up to the legal limits, using plan assets and PBGC guarantee funds.
What happened to the Ontario Pension Plan?
The Ontario Retirement Pension Plan (ORPP) was a proposed social insurance program for Ontario, Canada to complement the national Canada Pension Plan. Plans to implement the ORPP were cancelled in 2016 following an agreement between the federal government and the provinces to expand the Canada Pension Plan.
Do pensions follow you?
Your workplace pension still belongs to you. If you do not carry on paying into the scheme, the money will remain invested and you’ll get a pension when you reach the scheme’s pension age. You can join another workplace pension scheme if you get a new job. carry on making contributions to your old pension.
When a company adopts a pension plan prior service costs should be charged to?
projected benefit obligation exceeds the fair value of the plan assets. When a company adopts a pension plan, prior service costs should be charged to: A) retained earnings.
Why are pensions defined benefits?
A defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum or combination thereof on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending directly on …
Is my pension safe if company goes bust?
Your employer cannot touch the money in your pension if they’re in financial trouble. You’re usually protected by the Pension Protection Fund if your employer goes bust and cannot pay your pension. The Pension Protection Fund usually pays: 90% compensation if you’re below the scheme’s pension age.
Are pensions protected if company goes bust?
Insurance On Your Pension Plan There are safeguards in the United States to prevent you from losing your pension plan. In the United States, every defined-benefit retirement plan is insured, at least to a point. Most will receive all or at least most of their company pension even if your company goes bankrupt.
What is the average pension in Ontario?
Canada Pension Plan: Pensions and benefits monthly amounts
| Type of pension or benefit | Average amount for new beneficiaries (March 2021) |
|---|---|
| Retirement pension (at age 65) | $706.57 |
| Post-retirement benefit (at age 65) | $13.84 |
| Disability benefit | $1,038.95 |
| Post-retirement disability benefit | $510.85 |
What was pension expense for Hubbard, Inc?
Hubbard, Inc. received the following information from its pension plan trustee concerning the operation of the company’s defined-benefit pension plan for the year ended December 31, 2018. The service cost component of pension expense for 2018 is $1,040,000 and the amortization of prior service cost due to an increase in benefits is $210,000.
What is return on investment for Kraft pension plan?
Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2018. The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2018 is
What was pension expense for Barton, Inc?
Barton, Inc. received the following information from its pension plan trustee concerning the operation of the company’s defined-benefit pension plan for the year ended December 31, 2018. The service cost component of pension expense for 2018 is $600,000 and the amortization of prior service cost due to an increase in benefits is $80,000.
