Business Finance
Amortization of Unrecognized Gains/Losses for Pensions

Intermediate accounting IIl

Question Description

Vickie Plato, accounting clerk in the personnel office of Streisand Corp., has begun to compute pension expense for 2019 but is not sure whether or not she should include the amortization of unrecognized gains/losses. She is currently working with the following beginning-of-the-year present values for the projected benefit obligation and market-related values for the pension plan:


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Amortization of Unrecognized Gains/Losses for Pensions Vickie Plato, accounting clerk in the personnel office of Streisand Corp., has begun to compute pension expense for 2019 but is not sure whether or not she should include the amortization of unrecognized gains/losses. She is currently working with the following beginning-of-the-year present values for the projected benefit obligation and market-related values for the pension plan: The average remaining service life per employee in 2016 and 2017 is 10 years and in 2018 and 2019 is 12 years. The net gain or loss that occurred during each year is as follows. Answer the following questions in the Discussion Board: You are the manager in charge of accounting. Write a memo to Vickie Plato, explaining why in some years she must amortize some of the net gains and losses and in other years she does not need to. In order to explain this situation fully, you must compute the amount of net gain or loss that is amortized and charged to pension expense in each of the 4 years listed above. Include an appropriate amortization schedule, referring to it whenever necessary. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2016). Accounting for pensions and postretirement benefits. Intermediate accounting (16th ed.). (p. 1177). New York, NY: John Wiley & Sons, Inc. ...
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Final Answer

I wrote this paper from scratch but the checker gives me a different impression. As a result, I have decided to use turnitin and I have therefore attached the turnitin report

Surname 1
Student’s Name
Professor’s Name
Course
Date

To: Vickie Plato
From: Accounting In charge
Date: 28th March 2019
Re: Amortization of unrecognized gain or losses
Pension expenses included several expenses; one of them is amortization of unknown
loss or gai. The gain or loss occur due to two reasons, one is plant assets provide return which is
either greater or lesser than what was expected. Another reason is change in assumptions of
actuarial, which may increase or decrease the potential liability. If the amount of income or loss
is minimal as compared to the amount of pension benefit obligation or market value of asset,
then gain or loss are not included in the pension expenses.
If the amount of gain or loss is increased in any year, then the same is included in the
pension expenses so to avoid underestimation or overestimation of annual obligation. The
process is called a...

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