CHAPTER 13
EMPLOYEE COMPENSATION: POSTEMPLOYMENT AND SHARE-BASED
LEARNING OUTCOMES
After completing this chapter, you will be able to do the following:
- Describe the types of postemployment benefit plans and the implications for financial reports.
- Explain and calculate measures of a defined benefit pension obligation (i.e., present value of the defined benefit obligation and projected benefit obligation) and net pension liability (or asset).
- Describe the components of a company’s defined benefit pension expense.
- Explain and calculate the impact of a defined benefit plan’s assumptions on the defined benefit obligation and periodic expense.
- Calculate and explain the effects on financial statements of adjusting for items of pension and other postemployment benefits that are reported in the notes to the financial statements.
- Interpret pension plan note disclosures including cash flow related information.
- Evaluate the underlying economic liability (or asset) of a company’s pension and other postemployment benefits.
- Calculate the underlying economic pension expense (income) and other postemployment expense (income) based on disclosures.
- Explain issues involved in accounting for share-based compensation.
- Explain the impact on financial statements of the accounting for stock grants and stock options, and the importance of companies’ assumptions in valuing these grants and options.
SUMMARY OVERVIEW
- Defined contribution pension plans specify (define) only the amount of contribution to ...
