Gov NFP Ch 8 Exam 3 Questions and
Answers|Latest Update
when is pension or OPEB exp adj for deferred inflows and outflows for deferred inflows
and outflows of resources related to:
- differences bw expected and actual experience (reported as deferred infl/outfl of resources and
amort over average expected remaining service lives of employees in the plan)
- changes in assumptions about future econ or demographic factors or other inputs (reported as
deferred infl/outfl of resources and amort over the ave expected rem serv lives of employees in
the plan)
- diff in the projected and actual earnings on pension or OPEB plan investments (reported as
deferred infl/outfl or resources and amort over FIVE YRS)
what are the attributes of a defined contribution plan - provides an indiv acct for ea
eligible empl
- defines the amt of req contrib by employer to the acct while the empl is working
- provides ben to retiree based on employer's contrib, earnings from invest, and the effect of
admin costs and forfeitures of contrib from employees alloc to an empl acct
, what is a benefit in accounting for defined contrib for employers it's simpler acctng and
employer liab is more easily determined
- generally, a gov employer only records a liab at the end of its fiscal yr, when the employer has
not made all of its agreed upon contrib to the employees' accts
what may governments use to decide amount to contribute to pension or OPEB plans during a yr
they can decide to contrib the actuarially determined contrib (ADC)
what are pension and OPEB trust funds - used to report fiduciary activities administered
through trusts that meet 3 criteria:
1.) employer contrib are irrevocable
2.) plan assets are dedicated to providing pens or OPEB ben to retirees
3.) plan ass are legally protected from the creditors of the employer, plan admin, and gov's empl
partic in a defined ben plan
what is the msmt focus and basis of acctng for pension and OPEB trust funds - econ
resources msmt focus
- accrual basis of acctng (plan liabs for ben and refunds arer recog when due and payable in
accordance w ben terms)
Answers|Latest Update
when is pension or OPEB exp adj for deferred inflows and outflows for deferred inflows
and outflows of resources related to:
- differences bw expected and actual experience (reported as deferred infl/outfl of resources and
amort over average expected remaining service lives of employees in the plan)
- changes in assumptions about future econ or demographic factors or other inputs (reported as
deferred infl/outfl of resources and amort over the ave expected rem serv lives of employees in
the plan)
- diff in the projected and actual earnings on pension or OPEB plan investments (reported as
deferred infl/outfl or resources and amort over FIVE YRS)
what are the attributes of a defined contribution plan - provides an indiv acct for ea
eligible empl
- defines the amt of req contrib by employer to the acct while the empl is working
- provides ben to retiree based on employer's contrib, earnings from invest, and the effect of
admin costs and forfeitures of contrib from employees alloc to an empl acct
, what is a benefit in accounting for defined contrib for employers it's simpler acctng and
employer liab is more easily determined
- generally, a gov employer only records a liab at the end of its fiscal yr, when the employer has
not made all of its agreed upon contrib to the employees' accts
what may governments use to decide amount to contribute to pension or OPEB plans during a yr
they can decide to contrib the actuarially determined contrib (ADC)
what are pension and OPEB trust funds - used to report fiduciary activities administered
through trusts that meet 3 criteria:
1.) employer contrib are irrevocable
2.) plan assets are dedicated to providing pens or OPEB ben to retirees
3.) plan ass are legally protected from the creditors of the employer, plan admin, and gov's empl
partic in a defined ben plan
what is the msmt focus and basis of acctng for pension and OPEB trust funds - econ
resources msmt focus
- accrual basis of acctng (plan liabs for ben and refunds arer recog when due and payable in
accordance w ben terms)
