Intermediate Accounting, Thirteenth Edition

Chapter 20. ACCOUNTING FOR PENSIONS AND POSTRETIREMENT BENEFITS

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

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Where Have All The Pensions Gone?

Many companies have benefit plans that promise income and other benefits to retired employees in exchange for services during their working years. However, a shift is on from traditional defined-benefit plans, in which employers bear the risk of meeting the benefit promises, to plans in which employees bear more of the risk. In some cases, employers are dropping retirement plans altogether. Here are some of the reasons for the shift. ...