Imagine you are an accounting manager and are in the process of
implementing a pension plan for your organization. Prepare a brief
report to management on the various types of pension plans. In your
report, compare and contrast a contributory pension plan and a
noncontributory pension plan, and discuss the theoretical justification
for the accrual recognition of pension cost. Include one (1)
recommendation to management on which type of pension plan would be most
beneficial to the company.
Discuss the type of information that must be included in notes to
financial statements, and explain why the information is relevant to
financial statement users. Imagine you are an employee of a company and
want to know if the pension plan will provide you with the necessary
benefits upon retirement. Determine the type of information you would
look for in the notes on the pension funds, and ascertain the way in
which the information will provide assurance that the company will
properly fund your pension.