Basic understanding of pensions.

Course Description

The pension fund is a separate legal and accounting entity.  Although a company is not required to have a pension plan, if it does it must follow financial accounting standards and government accounting and presentation dictates. The major types of pension plans are defined contribution and defined benefit. The course presents reporting by a trustee for the plan, including the requirements surrounding pension plan financial statements. The accounting for settlements, curtailments, and terminations is presented. Postretirement benefit plans other than pensions are also discussed. Finally, the accounting and reporting for postemployment benefits are presented.


Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.

Course Specifics

Oct 17, 2018
Basic understanding of pensions.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Distinguish between defined contribution and defined benefit pension plans.
  • Recognize terminology used in pension plan accounting.
  • Calculate pension expense costs in a defined benefit plan.
  • Identify the reporting requirements for pension plans in financial statements.
  • Identify the differences between pensions and postretirement health care benefits.
  • Recognize differences in accounting for pensions vs. accounting for other postretirement benefits.

Table of Contents

Learning Objectives

Pension Plans

Defined-Benefit Pension Plans


Total Pension Expense

Actuarial Gains and Losses/Prior Service Costs

Gain or Loss

Smoothing Unexpected Gains and Losses on Plan Assets

Smoothing Unexpected Gains and Losses on the Pension Liability

Corridor Amortization

Pension Plan Benefit Formula

Plan Assets

Underfunding or Overfunding

Retirement Benefit

Summary of Accounting for Pension Plans

Application Examples

Business Combinations

Discontinued Operations

Employers Having More Than One Defined-Benefit Plan

Multiemployer Plans

Multiple-Employer Plans

Annuity (Allocated) Contracts

Employee Retirement Income Security Act (ERISA)

Life Insurance

Settlement, Curtailment, and Termination




Trustee Reporting of a Defined-Benefit Pension Plan

Postretirement Benefit Plans Other Than Pensions



Plan Amendment


Interim Periods


Employers' Disclosures about Pension and Other Postretirement Benefits

Pension Plan Financial Statements

Net Assets Available for Benefits


Contributions Receivable

Insurance Contracts

Operating Assets


Statement of Changes in Net Assets Available for Benefits

Actuarial Present Value of Plan Benefits

Changes in Actuarial Present Value of Plan Benefits

Required Disclosures

Employers' Accounting for Postemployment Benefits

Profit Sharing Plans

Annual Report References

Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation


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Online Access

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