ACCT 6230 Week 9 (2)

Week 9 Assignments – Post Retirement Benefits

DUE DATE: Sunday midnight of Week 9, submitted in a MS Word (or Excel if

computations required) document with filename format:

Last First_Week X hwk.doc or .xls Make sure your name appears on each page of the

homework using the header function.

Homework questions:

1. Discuss both the similarities and differences between current GAAP and IFRS pension

accounting standards. Do you think that converged standards between FASB and the

IASB would improve the problems that have occurred in pension plans during out

economic crisis and prevent the underfunded status that currently exists in so many

plans? If you could think of one change that might strengthen the US pension system as it

currently exists, what would you change.

2. Do you expect more companies to collapse under the weight of enormous increases in

pension funding due to the extraordinary decreases in fund values? If this happens, what

impact can you see this having on an already strained economy, and on the futures of

retirees? Talk about this in the context of least two components of the economy.

3. What do you think your future retirement benefits might look like? Do you think Social

Security will be available for you-if yes, how do you think it will be funded and if no,

what will replace it? (This will be interesting based on a very diverse age group we have

in this class!)

4. Why are companies switching to Cash Balance Plans, from traditional pension plans?