Pension Accounting And Reporting With Other Comprehensive Income And Deferred Taxes: A Worksheet Approach
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Keywords
Pension Reporting, Other Comprehensive Income, Deferred Income Taxes, FASB ASC No. 220, FASB ASC No. 715
Abstract
This instructional tool presents pension accounting using a worksheet approach where debits equal credits for both the employer and for the plan. Transactions associated with the initiation of the plan through the end of the second year of the plan are presented, including their impact on accumulated other comprehensive income and deferred taxes. This article is intended as a supplemental teaching tool that demonstrates the impact of a plan’s funded status on the employer’s financial statements in a way that, based upon anecdotal evidence, accounting students and practitioners have found extremely beneficial beyond traditional accounting textbooks.